Central Bank of India plans to raise up to Rs 3,000 crore

By: |
Published: August 21, 2019 3:10:06 AM

The lender through a exchange notice had said earlier that it recieved shareholder approval to raise up to Rs 5,000 crore through rights issue or qualified institutional placement (QIP).

Central Bank of India, CBI, Central Bank, industry news, banking news, MSME, MSME sector, QIPThe Mumbai-based lender also said that it plans to link its lending rates to the repo rate and also plans to introduce certain repo-linked retail loans in a month.

Public-sector lender Central Bank of India plans to raise Rs 2,000-3,000 crore over the next two months in multiple tranches, Pallav Mohapatra, MD and CEO said on Tuesday. The state-owned lender also expects additional capital infusion from the government by the end of Q2FY20. “We will raise between Rs 2,000-3,000 crore from the market in the next two months in addition to whatever we get from the government,” said Mohapatra.

The Mumbai-based lender also said that it plans to link its lending rates to the repo rate and also plans to introduce certain repo-linked retail loans in a month. The lender through a exchange notice had said earlier that it recieved shareholder approval to raise up to Rs 5,000 crore through rights issue or qualified institutional placement (QIP).

Read| Banks’ compliance culture far from satisfactory: RBI director-general MK Jain 

Mohapatra also said he finds majority of mid-level NBFCs functioning well and continues lending to the sector. “Most of the mid-segment NBFCs are doing well and I do not hesitate to lend to NBFCs,” said Mohapatra. On account of defaults by two large non-banks, the sector has been reeling under the pressure of higher cost of funds.

The bank expects credit growth to be led by the retail and MSME portfolios in the near future. Mohapatra said he expects an overall credit growth of 10% in the current fiscal which would be led by a 14% growth the the retail and MSME sector. The system wide non-food credit growth for the fortnight ended August 2 was stable at 12.18%.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.