Canara Bank to raise Rs 4,500 cr to meet capital needs
Public sector Canara Bank will raise up to Rs 4,500 crore through issuance of shares to investors, including FIIs, QIBs or NRIs. The bank, in a regulatory filing, said it will place the proposal at the proposed extraordinary general meeting scheduled on March 1 for getting approval for “raising of capital of up to Rs 1,000 crore in addition to Rs 3,500 crore approved by the shareholders of the bank, thus aggregating in
all up to Rs 4,500 crore from investors other than the government”.
The bank said the proceeds will be utilised to meet the capital requirements of the bank and the growth in its assets, primarily loans and investment portfolio due to the growth of the Indian economy and for other general corporate purposes including meeting the expenses of the issue. This capital raise plan is in addition to the proposed Rs 4,865 crore that the lender will get as capital infusion from the government in lieu of preference shares that will also be taken up for approval at the EGM on March 1.
Last week, the bank had said that it will obtain shareholders’ approvals for the capital infusion of Rs 4,865 crore by the government. Stock of Canara Bank closed 2.05 per cent up at Rs 327.95 on BSE.