Centurion Bank to float Rs 65 crore rights issue by June

Centurion Bank expects to come out with its right issue of about Rs 65 crore by June. Addressing media persons in Chennai, Shailendra Bhandari, managing director, said, "We expect to come out with the rights issue worth Rs 65 crore in the next four months. The paid-up capital has reduced from Rs 152.47 crore to Rs 15.24 crore following the writing down of the face value of shares from Rs 10 to Re1 as on 4 Februray 2004. "

Bhandari said, "The first tranche of equity worth Rs 154 crore has been infused by the Sabre Investor Group and other shareholders. The fresh infusion of funds is estimated to be Rs 219 crore and the bank's capital adequacy ratio was 9 per cent as on February 6, 2004 compared with 1.95 per cent as on March 31, 2003."

Retail portfolio accounts for almost 75 per cent of the total advances of the bank. The total advance was estimated at Rs 1,600 crore on 31 December 2003.

"We will continue to focus on lending to two-wheelers, commercial vehicles, constructions and personal loans. We are recruiting a senior manager who will head our retail banking operations," he added.

Bhandari said the bank will prefer to exercise the option of increasing the number of NRI deposits rather than go for an external commercial borrowing to increase capital.

At present, NRI deposits are about Rs 305 crore. Centurion Bank has got approval from the RBI to set up branches in Guwahati and Amritsar. The bank expects to expand its branch network to 260 from the present 60.