 "Corporation Bank to raise Rs 175 cr")
Corporation Bank is planning to raise Rs 175 crore from the Government of India. The proposed infusion would strengthen its capital.
SR Bansal, chairman and managing director, Corporation Bank, said during the fiscal the government infused Rs 450 crore and by the end of the fiscal it would get another Rs 175 crore.
Speaking on the sidelines of launching its SME loan centre here on Monday, he said with this infusion the government’s stake would increase to 63 per cent from the current 58 per cent.
The bank was looking at growing over RBI’s guidelines of 14-15 per cent during the current fiscal.
Bansal said the bank would focus on retail, SME and agriculture. At present, the retail portfolio accounts for 15 per cent of the total credit portfolio and the plan is to increase to 25 per cent in the next 12 months. Currently 10.25 is the base rate up to Rs 30 lakh and above that it’s 10.5 per cent.
To boost lending to these sectors, specialised centres for each of the businesses are being set up across the country. Home loan is where it is bullish about in the retail segment.
The bank is planning to open 300 branches and is in the process to open 150. Of this, 30 per cent would be in unbanked areas.
“Anywhere in the country, the break even of the branch would be around 12 months while in some cases it is earlier also” said Bansal.
On the NPA, he said, during the third quarter the slippages were expected to be less as compared with the second quarter. He attributed this to the recovery measures. Credit will pick up during the fourth quarter and once the stable government comes in the Centre things will pick up further, said Bansal.
On the day of inauguration of the centre, it sanctioned 25 loans worth Rs 22.29 crore.
R Natarajan, CGM-Chennai circle, said there were 700,000 registered units in the state and around Rs 3,200 crore invested here. These units employ around 5 million people.
SR Bansal, chairman and managing director, Corporation Bank, said during the fiscal the government infused Rs 450 crore and by the end of the fiscal it would get another Rs 175 crore.
Speaking on the sidelines of launching its SME loan centre here on Monday, he said with this infusion the government’s stake would increase to 63 per cent from the current 58 per cent.
The bank was looking at growing over RBI’s guidelines of 14-15 per cent during the current fiscal.
Bansal said the bank would focus on retail, SME and agriculture. At present, the retail portfolio accounts for 15 per cent of the total credit portfolio and the plan is to increase to 25 per cent in the next 12 months. Currently 10.25 is the base rate up to Rs 30 lakh and above that it’s 10.5 per cent.
To boost lending to these sectors, specialised centres for each of the businesses are being set up across the country. Home loan is where it is bullish about in the retail segment.
The bank is planning to open 300 branches and is in the process to open 150. Of this, 30 per cent would be in unbanked areas.
“Anywhere in the country, the break even of the branch would be around 12 months while in some cases it is earlier also” said Bansal.
On the NPA, he said, during the third quarter the slippages were expected to be less as compared with the second quarter. He attributed this to the recovery measures. Credit will pick up during the fourth quarter and once the stable government comes in the Centre things will pick up further, said Bansal.
On the day of inauguration of the centre, it sanctioned 25 loans worth Rs 22.29 crore.
R Natarajan, CGM-Chennai circle, said there were 700,000 registered units in the state and around Rs 3,200 crore invested here. These units employ around 5 million people.