City Union Bank plans to raise Rs.1,000 crore
May 26th, 2010 - 9:33 pm ICT by IANSChennai, May 26 (IANS) Private sector City Union Bank has started discussions with institutional investors to raise Rs.1,000 crore for its business growth, a top bank official said Wednesday.
“As per our plans we need around Rs.1,000 crore incremental capital over the next two or three years. We are in discussion with various institutional investors. We will go with the investors whose risk appetite is similar to ours,” Executive Director N. Kamakoti told reporters here.
He said the bank will get the shareholders approval for the issue at the ensuing annual general meeting.
According to him, the bank is projecting a total business of Rs.22,000 crore this fiscal (deposits Rs.13,250 crore and advances Rs.8,750 crore) and will be opening 56 new branches taking the total branch network to 278.
“Two-thirds of the new branches will be in Tamil Nadu and the balance will be spread across the country,” he added.
The Kumbakonam-based bank closed the fiscal 2009-10 with a total income and net profit of Rs.1,100 crore and Rs.152.76 crore, respectively, as against Rs.928 crore and Rs.122.13 crore earned the previous year.
According to Kamakoti, the net interest income last year went up by 14.66 percent to Rs.278.14 crore. The non-interest income stood at Rs.143.50 crore last year showing a growth of 16.03 percent over that of the previous year’s figure.
The bank’s deposits stood at Rs.10,285 crore and advances at Rs.6,833 crore last year as against Rs.8,207 crore and Rs.5,645 crore, respectively, during 2008-09.
Kamakoti said the bank’s gross non performing asset (GNPA) stood at 1.36 percent of the advances at the end of last fiscal down from 1.80 percent the previous year.
“The net NPA for last year was 0.58 percent down from 1.08 percent the previous fiscal,” he said.
He said the bank’s total investment portfolio at the end of March 2010 stood at Rs.3,210 crore and the investments in equities stood at Rs.16 crore against a permitted exposure of Rs.50 crore.
- UCO Bank's Q3 net jumps 10 percent - Feb 01, 2012
- Indian Bank to convert Rs.400 crore preference shares to equity - Jan 30, 2012
- IOB plans recovery of Rs.1,500 crore from sticky accounts (Lead) - Jan 28, 2012
- City Union Bank to expand reach - Jul 30, 2011
- IGL Q2 profit up 17 percent - Nov 12, 2010
- HDFC Bank net profit up 31.48 percent - Oct 19, 2011
- Vijaya Bank net zooms 235 percent in Q4 - Apr 30, 2012
- Allahabad Bank's Q4 net profit up by 14.74 percent - May 02, 2011
- Canara Bank net up 79 percent in fourth quarter - May 05, 2011
- City Union Bank to come out with rights issue - Jan 31, 2012
- Axis Bank profit soars 33 percent in Q4 - Apr 22, 2011
- ICICI Bank quarterly net profit rises 31 percent - Apr 27, 2012
- UCO Bank's Q3 net jumps 10 percent (Lead) - Feb 01, 2012
- Indian Bank to raise $500 mn for overseas operations - Jul 29, 2011
- Punjab National Bank quarterly net profit rises - May 04, 2011
Tags: annual general meeting, business growth, chennai, city union bank, executive director, institutional investors, interest income, investment portfolio, kamakoti, net interest, net profit, npa, previous year, private sector, risk appetite, rs 1, rs 6, s gross, shareholders, union bank