Canara Bank to raise $100 mn via bonds in March
The process would be completed before the end of this fiscal.
By PTI |
New Delhi: Canara Bank on Monday said it will raise $ 100 million via hybrid instruments during this month.
"The proposed hybrid Tier-I instrument would be raised through our Hong -Kong branch, which would be coming up shortly," Canara Bank Chairman and Managing Director M B M Rao told reporters in New Delhi.
The process would be completed before the end of this fiscal, he said.
The capital adequacy ratio (CAR) of the bank currently stands at 12.4 per cent, he said adding "we will maintain it in the future."
Meanwhile, the Bangalore-based bank also announced to set 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.
The proposed insurance joint venture would be controlled by Canara Bank 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 Rs 325 crore of which HSBC will contribute Rs 170 crore, which includes premium for accessing the vast branch network of public sector banks.
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