Syndicate Bank is looking to raise ₹500 crore to ₹1,000 crore by the end of the last quarter this financial year through either a rights issue or tier-one bond issue.
“We have about 12% capital adequacy. We want to have some growth capital too,” Mrutyunjay Mahapatra, managing director and chief executive officer of the bank, told the media here on Tuesday.
Employee scheme
The bank proposes to raise ₹400 crore to ₹500 crore under the employee share purchase scheme. The shares will come at 20% to 25% of the average market price as discount. Good performers would get a little more discount with the bank’s innovative structuring. The bank was expecting 4.5% credit growth this fiscal. However, in the first six months, this had slightly de-grown and the advance books had come down.
Hence, the bank was looking at about 2% credit growth by the end of the financial year, he said.
With regard to agriculture NPAs, there was some pressure as some governments had announced debt waiver. The bank’s net agriculture NPAs is 6%. The total NPA recovery target for the bank for the whole year is ₹3,000 crore, Mr. Mahapatra added.
