Canara Bank weighs options to raise Rs 2,500 cr, awaits 'good price'
India's third largest lender Canara Bank is adopting a wait-and-watch approach to raise Rs 2,500 crore from the market.
Though the bank has already obtained board approval to mobilise funds, it would do so only when the 'yield is good', Chairman and Managing Director R.K. Dubey told newspersons on the sidelines of a mega retail and MSME loan expo organised by the bank here on Wednesday.
"There is no pressure for capital on us (as of now). We have been sanctioned Rs 500-crore capital by the Government. Our EGM will be held on December 30. We will have to pass a resolution for that," Dubey said.
While ruling out the option of taking the Qualified Institutional Placement (QIP) route, he said: "We may go for bonds. We have not yet decided. We will go wherever yield is more. Our committee will work with investors and foreign collaborators. It could be a mix of instruments."
If the pricing is good, the funds could be raised in the current financial year. Else, it could be postponed to the first or second quarter of the next financial year. Read more
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