Kolkata, May 10 (Inditop.com) Tamil Nadu-based City Union Bank is expecting 30 percent growth in credit and deposit this fiscal, a top bank official said here Monday.
The bank has set a business target of Rs.23,000 crore in 2010-11.
“We are expecting 30 percent growth in deposit and credit in this fiscal,” S. Balasubramanian, managing director and chief executive officer of the bank told reporters on the sidelines of a banking summit organised by the Indian Chamber of Commerce.
The bank has registered 26 percent growth in deposit and 22 percent growth in advances in 2009-10.
Saying a rapid network expansion across the country would open up new opportunities for the bank, he added: “Earlier, we were focused on south India, but last year we have opened 42 branches across the country. This year also we will open around 60 branches.”
It has got licence from the Reserve Bank of India to open 40 branches in urban centres and 20-22 branches in rural centres, Balasubramanian said.
He said once the bank’s business grows beyond Rs.25,000 crore it would need capital. “Our aim is to have a business of Rs.50,000 crore by 2015.”
The bank’s capital adequacy ratio at present is at 13.92 percent.
It needs to raise around Rs.1,000 crore by the time it achieves a business of Rs.50,000 crore.
“Even after procuring through internal accrual we will have a gap of around Rs.300 crore. We may go for the rights issue then. Alternatively, we also have the general body approval for QIPs (Qualified Institutional Placement). It could be a combination of these two,” he said.
