Public sector Corporation Bank plans to raise an additional Rs 700 crore from bonds in the second quarter to fund its growing business which may cross Rs 1,50,000 crore this fiscal.
"We have raised Rs 1,300 crore from Tier I and Tier II bonds so far and will raise another Rs 700 crore in the July-September quarter," the bank Chairman and Managing Director J M Garg said.
The capital raised during the second quarter would be sufficient to maintain capital adequacy ratio (CAR) over 12 per cent and meet targeted business growth for the fiscal, he said.
The CAR of the Mangalore-based bank stood at 16.29 per cent at the end of first quarter of the current fiscal.
During 2009-10, the bank is expecting credit growth of 22 per cent, he said, adding, the outstanding credit of the bank stood at Rs 47,377.59 crore at the end of June 30, 2009.
Talking about the business expansion, Garg said the bank expects the total business to cross Rs 1,50,000-crore mark during the current fiscal.
"We are expecting the business mix to be about Rs 1,50,000 crore in 2009-10," he said.