Canara Bank to raise $100 million via bonds in March
By Our Banking Bureau | 06 Mar 2007
New Delhi: Canara Bank plans to raise $100 million through hybrid instruments during this month through its Hong Kong branch. The process is expected to be completed before the end of this fiscal.
The capital adequacy ratio (CAR) of the bank currently stands at 12.4 per cent and the bank expects to maintain this in the future.
Canara Bank has also announced setting up an insurance joint venture with the Oriental Bank of Commerce (OBC) and HSBC Insurance in which Canara Bank will have a majority stake of 51 per cent.
Canara Bank would control the proposed insurance joint venture with 51 per cent stake, while OBC would hold 23 per cent stake and HSBC the remaining 26 per cent - the maximum permissible limit for foreign partners under the present regulatory system.
The new life insurance company will have a paid up capital of Rs325 crore of which HSBC will contribute Rs170 crore, which includes premium for accessing the vast branch network of public sector banks.