Mumbai, Aug 21 (PTI): State-run Central Bank of India is planning to mop up around Rs 3,000 crore in core capital from markets in the next two months, a top official said. This capital is excluding the fund infusion that is likely to come from the government, managing director and chief executive, Pallav Mohapatra told reporters on the sidelines of the annual industry conference Fibac here Tuesday.
“We want to raise Rs 2,000-3,000 crore from markets apart from what we get from the government,” he said, adding the money will be raised in the next two months either through a follow-on offer or a qualified institutional placement.
The bank has also made a funding request to the government from the Rs 70,000-crore it has budgeted, Mohapatra said, refusing to disclose how much they have asked for. He said the bank expects the money from the government to flow in by September and added that its capital raising plan from the market does not hinge on it.
The money will be raised in tranches from the market. The city-based bank is targeting a credit growth of 10 percent during the fiscal, he said, adding the demand is expected to pick up in the second half. It is expecting a credit growth of up to 15 per cent in the retail, agriculture and small businesses, while corporate will be slower, he said.
“As of now, credit growth coming from retail. There is demand in MSMEs, roads, renewables. In a few months from now, manufacturing also will be there,” he said. Mohapatra said the bank will be coming out with repo- linked loans by September end in the retail segment for new loans and existing borrowers can also switch to the new lending benchmark for a fee.
On the government commitment of state-run banks buying out Rs 1 trillion worth of loan portfolios from the troubled NBFCs, Mohapatra said he will move the board with a request towards this next month.