Canara Bank plans overseas expansion

August 22, 2014 12:18 am | Updated 12:18 am IST - KOLKATA:

Canara Bank Chairman R.K. Dubey

Canara Bank Chairman R.K. Dubey

Canara Bank is planning overseas expansion in a big way, according to Chairman R. K. Dubey. He said that the bank was planning to mark its footprint in new destinations such as Japan, Brazil, Africa and Germany.

“We are planning to set up branches in Dubai, Germany, Brazil, Japan and Tanzania, besides adding three more offices in the U.K., where the bank already has an office each in London and Leicester,” Mr. Dubey said while talking to journalists on the sidelines of a FICCI Banking conclave here on Thursday.

The bank would add 20 more branches over the next five years when business from overseas offices was expected to double to 15 per cent (of the total business), he said. Canara Bank was looking to raise Rs.3,000 crore through qualified institutional placements, Mr. Dubey, said. “We have received the Reserve Bank of India approval. We are awaiting the Finance Ministry’s nod, and can launch the issue as soon as we get it,” he said, adding that the issue would have a greenshoe option.

A follow-on public offer (FPO) was also expected next fiscal, he said, adding “sentiments seem to be good”.

According to Mr. Dubey, the bank is also looking forward to a capital infusion of Rs.500 crore from the Centre.

At the conclave, he said that the bank’s asset quality was good and its cash recovery was the industry-best.

On the issue of financial inclusion, he said with the resolution of technological glitches it should now be possible to provide mobile net banking on ordinary handsets too. “You may not need a smartphone any longer,” Mr. Dubey said.

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