Centurion to use phase II funds in case of buyout opportunity

Centurion Bank could resort to second phase of capital infusion if it finds opportunities to grow inorganically.

"We would be open to the inorganic growth opportunities if it adds shareholder value and offers the bank better business synergies "" by way of better geographical presence and product enhancement," said Shailendra Bhandari managing director Centurion Bank.

"Private sector banks are in a unique position in the next two to three years as there is no major competition in terms of acquisition from foreign banks till 2009 as stated by the regulator in the guidelines on ownership in private sector banks," he added.

Centurion Bank in January 2005 had sort shareholder approval to raise additional equity capital of around Rs 600 crore in one or more tranches.

The bank recently raised around Rs 350 crore through a global depository receipt (GDR) issue. Post issue, the banks capital adequacy ratio has gone up to over 23 per cent. The infusion of capital enabled the bank boost its capital base to over Rs 300 crore.

On the Bombay Stock Exchange today the Centurion Bank scrip ended flat at Rs 14.99. "The bank plans to double its double its branch network in the next few years," said Bhandari.

It is likely to open around 30 new branches in the current financial year. At present, the bank has around 99 branches. The bank plans to enter the credit cards business in the current financial year.

Retail and wealth management will be the key focus area for the bank. The bank is planning to step up its wealth management business by introducing real estate advisory and commodity investment advice, said Harpreet Singh head branch banking and wealth management services Centurion Bank.