Corporation Bank plans to raise Rs 5,000 cr in FY20

New Delhi: Public sector lender Corporation Bank plans to raise up to Rs 5,000 crore through issuance of fresh equity shares, debt instruments on private placement basis, rights issue or through QIP in the current fiscal.

The bank will seek approval from shareholders at its meeting scheduled for June 29 for raising of capital by issuance of fresh equity shares or by issuance of additional tier I or tier II capital as per Basel III guidelines, Corporation Bank said in its annual report 2018-19.

The bank said it will create such number of equity shares and/or debt instruments on a private placement/public issue for investors for an amount not exceeding Rs 5,000 crore in one or more tranches.

On the intent of the capital raise plan, Corporation Bank said it may require additional capital from the market to support the projected business requirements and at the same time maintain healthy CRAR, in line with capital raising plan and as per reform agenda undertaken.

Under Basel III norms, the bank is required to maintain total CRAR (Capital to Risk Adjusted Assets Ratio) of 10.875 per cent, it said in the report.

The lender had posted a net loss of Rs 6,332.98 crore in 2018-19 as against a net loss of Rs 4,053.94 crore in the previous year. Total income too fell to Rs 17,494.70 crore compared to Rs 19,941.41 crore.