Mumbai: State-run Central Bank of India plans to hit the capital market in June to fund its technology upgradation plans and meet Basel II and HRD development requirements.
The bank would be filing its prospectus with market regulator Securities and Exchange Board of India (SEBI) this week, bank Chairperson and Managing Director H.A. Daruwalla told reporters here on 14 May.
“We are hopeful of entering the market in June, after obtaining regulatory approvals,” she said.
Daruwalla, however, refused to disclose the size of the issue and its premium component. The government will offload its stake through the fresh equity offered by the Mumbai-based bank.
The mid-sized lender has already restructured its capital of Rs1,124.14 crore as on March 2007, to preference capital of Rs800 crore and equity capital of Rs324.14 crore.
Post-issue, the bank’s capital adequacy will go up from the present 10.4% to 12%. The net interest margin (NIM) is also likely to improve from the present level of 3.16, she said.
On its foreign operations, Daruwalla said the bank is now awaiting Reserve Bank of India’s approval to open representative offices in Dubai, Singapore, Hong Kong and Doha.
“We are also considering opening a branch office in London,” she said.