The Central Bank of India is hoping that the Banking Regulation Act would be amended soon to help float its maiden public offering. |
Speaking on the sidelines of the Banking Conclave organised by the Ficci, H A Daruwalla, chairperson and managing director, said the bank is awaiting the RBI and the finance ministry's clearance for its proposed IPO. |
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"We have requested the RBI and the ministry for allowing us to get listed. There is a requirement of capital restructuring for which the amendment of the Banking Regulation Act has to be passed," she said. |
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The capital base of the bank stands at Rs 1,124 crore. "The existing capital has to be treated differently. Part of the capital needs to be treated as preferential capital and the remaining as equity," she noted. |
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The bank had planned to hit the market last March. "It might take the bank three months after the required amendment is done to hit the market," she said. |
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After raising Rs 100 crore Tier II capital last March, the bank would be required to raise Tier II capital further if the maiden public offering does not take place within the current financial year, in a bid to meet the capital requirement, she explained. |
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Meanwhile, the bank is expecting a turnover of Rs 1,27,000-1,28,000 crore against last year's corresponding figure of over Rs 1,05,678 crore, she said. |
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The bank also expects credit to grow by 30 per cent and deposits to grow by 20-21 per cent in 2006-07 compared with last year's 34 per cent and 9.4 per cent, respectively. |
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The bank would be focusing on low cost deposits, added Daruwalla. The capital adequacy ratio as on March 2006 stood at 11.10 per cent. |
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In addition, the bank was in the process of tying up with UTI Asset Management Company for distributing its products, which in turn would increase the bank's fee based income. |
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The bank would also be focusing significantly on increasing demat accounts, Daruwalla added. |
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