Corporation bank to raise Rs650 crore through bonds

Mangalore-based public sector lender Corporation Bank today disclosed in a regulatory filing with the Bombay Stock Exchange (BSE) that it planned to raise Rs650 crore through issue of bonds in the markets. The bank's growing business is likely to cross Rs1,50,000 crore this fiscal.
The bank has raised Rs1,300 crore from Tier I and Tier II bonds so far and is expected to raise another Rs700 crore in the July-September quarter bank chairman and director JM Garg told PTI.

He added that the capital raised during the quarter would be sufficient to raise capital equity adequacy ratio (CAR) over 12 per cent and meet targeted growth for the fiscal.

The CAR of the bank was at 16.29 per cent at the end of the first quarter of the current fiscal.

He added that during 2009-10 the bank was expecting growth in credit of 22 per cent while the outstanding credit of the bank touched Rs47,377.59 crore as at 30 June 2009.

The total business as at the end of 30 June 2009, stood at Rs1,19,505 crore with an your-on-year growth of 27.5 per cent.

With healthy growth in core business and other incomes, the bank's net profit is expected to grow 25 per cent.