Public sector Central Bank of India will raise capital up to Rs 2,046 crore by mid-March through a preferential allotment route as part of the capital infusion by the government.
"We will raise capital up to Rs 2,046 crore by mid-March through a preferential allotment," Central Bank of India chairman and managing director Mohan Tanksale told reporters on the sidelines of an event organised by the Indian Merchants Chamber (IMC).
Post the capital raising, the tier-I capital of the bank will go above 8 per cent with a capital adequacy ratio of around 12 per cent, he said. With this, the government ownership in the bank will near 84 per cent.
The Finance Ministry had last month finalised over Rs 12,000-crore capital infusion plan for public banks which have low core capital base.
Referring to an RBI panel report which has suggested setting up a 'gold bank', Mr Tanksale said this would help in monetising the precious metal into productive asset. The idea of setting up a 'gold bank' would be a step in the right direction, he said.
Earlier, speaking on the state of economy and challenges faced by the banks, He said rise in bad loans along with slow credit growth to productive sector remained areas of concern for the banking industry.
He underlined the need to reduce the fiscal deficit and current account deficit.
Central Bank posted a 59 per cent jump in net profit at Rs 180 crore in the December quarter.
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