Canara Bank to seek shareholders' nod for raising Rs 5,000 cr
New Delhi, July 19 : Canara Bank will seek its shareholders' approval, in its upcoming Annual General Meeting on August 10, to raise Rs 5,000 crore through various modes including rights issue, qualified institutional placement among other available options.
However, in view of certain expansion plans of the bank, the implementation of BASEL III norms, and consequent capital charge, there is a need to increase the capital to further strengthen the Capital Adequacy Ratio, it said.
"In order to shore the Bank's Tier I capital, the Board of Directors of the Bank have decided to raise Capital to the extent of Rs 5,000 crores (including premium) through various modes including follow-on issue, right issue, preferential Issue to government and financial institutions, qualified institutional placement and other permitted mode of raising capital," it said
Several banks, both private and public, are looking at raising funds of late.
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