Kumbakonam-based private sector City Union Bank (CUB) has no immediate plans to raise funds even though it may need R1,000 crore as capex over a period of three years to back-up the anticipated 30% to 35% growth annually. Said N Kamakodi, managing director and CEO, CUB, ” We will take a call as and when we really want the funds on the ground. According to our calculation, we would be in need of R1,000 crore over a span of three years, In short-term, our cushion is that we have just crossed the R1000 crore milestone in out networth.”
Pointing out that the shareholders have already given nod for fund raising either through QIP or rights issue, he said that once the one year timeline it will again seek fresh mandate for it. “If the bank has the enabling resolution in hand we will be quick to explore market when it is favourable at time we decide to go for fund-raising”, he said adding ” we have enough headroom in our tier II capital to be able to augmented further”.
Pushing ahead with its network expansion plans, the bank is targetting to have 300 branches and 500 ATMs by the end of the current financial year. It currently has 250 branches and 251 ATMs. “We will be opening 30 more branches in a couple of months itself and also will be applying for more licences with RBI”, Kamakodi said.
CUB had last year initiated a slew of new technology initiatives such as online share trading, net banking with transaction facility for corporates, point of sale terminal deployment, outsourcing of cash management services, application supported by blocked amount for investment into initial public offerings and issuance of Visa card for corporates.