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Canara Bank plans Rs. 500 cr. bond issue

MUMBAI FEB. 7. Canara Bank will raise up to Rs 500 crores by issuing bonds this month to augment its capital adequacy ratio. The Union Finance Ministry has permitted the bank to raise Rs. 500 crores (Rs. 400 crores with a greenshoe option of Rs. 100 crores), towards Tier II capital by issuing subordinated bonds, Canara Bank executive director, N. Kantha Kumar, told PTI.

The bank was working on plans to raise funds this month. The bonds would have a tenure of 5-7 years while the coupon rate would be finalised based on the market trends, he said. The bank's capital adequacy ratio as on December 31, 2002 stood at 11.89 per cent. The bank has floated a public issue aggregating Rs. 385 crores in November 2002 to augment its long-term resources and maintain a comfortable capital adequacy ratio in line with its estimated growth in assets. — PTI

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