[ad_1]
Public sector lender Canara Bank plans to raise Rs 7,000 in equity in the form of rights issue or qualified institutional placement (QIP) for the current fiscal year, according to the head of the bank. an approval to raise 7,000 crores of rupees and adopt it at the annual general meeting tomorrow (Thursday) for the approval of shareholders.We will increase it through the issuance of rights or the QIP mode, as the case may be, "Rakesh Sharma, general manager and general manager He added that the capital raising will also include stock option plans of employees if the government
If we can improve our fundamentals, capital raising should not be a problem, and right now the first and second quarters should be good. "[19659002] The public bank announced a 12% increase in its net profit to 281 billion rupees in the first quarter of fiscal year 19 (against 252 million rupees in the quarter of last year). by a healthy jump in net interest income of 43% and a reduction in non-performing badets (NPA).
Fundraising can further strengthen the lender's capital strength. Even if the bank is sufficiently capitalized from a regulatory point of view, but may require growth capital from the government, adds Sharma, who took the leadership of Canara Bank in September 2015 from a small private lender Lakshmi Vilas Bank
the ratio at the end of June has improved to 13 percent (regulatory requirement of 10.875 percent) against 12.61 percent a year ago
Combat NPAs [19659002] Canara Bank also stepped up its efforts Speaking of monitoring large corporate loan accounts, Sharma said, "We have large credit monitoring modules for all accounts above Rs 1 crore. If we find irregularities or defects, these will be regulated by the regional offices, head and circle. "
He added that for the recovery," As of July 1, we have introduced an badet management wing for all badets on Rs "This will ensure that stressed badets will be closely monitored and so treated by experts of the bank.
Recovery "Sashakt"
with the project "Sashakt" will also help in the quick recovery of bad debts.
Sharma exudes confidence to target the reduction of the NPA to Rs 16,000-17,000 crore for the fiscal year ending in March 2019 with Rs 10,000 crore coming from the insolvency Under Sashakt, the Canara Bank will try to solve 12 accounts of 39, a value of about 28,000 rupees, of which 13,000,000 were admitted in various national courts of companies (NCLT), as indicated by the Reserve Bank.India is one of the first two lists [19659002] "About 12,000 to 1 3,000 rupees will remain outside and our efforts will contribute to a faster resolution, "said Sharma
. were at Rs 44,660 crore, nearly 11.05% of total loans, while the net NPAs were Rs 26,693.5 crore, or 6.91% of total loans
"We plan to reduce this to 8 -9% of gross NPAs and 5-5.9% of Net NPAs at the end of the year, "said Sharma, adding that from now on, shifts in standard loans in NPAs would be 2,000 to 2,500 crores per quarter.
Growth Prospects
Rs 4,250 crores were identified, of which Rs 1,000 crore will be sold to Asset Recovery Companies (ARCs), in the future.
To push loan growth further, the Canara Bank chief also established another project called "i-leads" to generate more leads to increase retail and small and medium-sized businesses
Sharma is aiming for growth of 10-12% advances with healthy growth in retail sales of 20% and 10-12% growth of SMEs despite some stress under Mudra loans for the year 19.
[ad_2]
Source link
