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India's Corporation Bank seeks additional capital to expand loan book

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India's Corporation Bank seeks additional capital to expand loan book

India's Corporation Bank is planning to raise up to 40 billion rupees in the next two years to support its loan growth, the country's Business Standard reported May 25.

The bank would raise 20 billion rupees in the current fiscal year and the rest in fiscal 2021, according to P.V. Bharathi, the bank's managing director and CEO. The bank could raise the capital through a combination of equity and Tier 1 capital, based on market conditions.

The bank needs the additional capital to expand its loan book, Bharathi said. Corporation Bank has a lending growth estimate of between 7% to 9% for fiscal 2020. The bank is also required to bring down the shareholding of its major shareholder, the Indian government, to about 75% from 93%, she added.

As of April 2, the government held a 93.50% stake in the bank, according to data available on BSE Ltd.

As of May 24, US$1 was equivalent to 69.39 Indian rupees.