Date:07/11/2008 URL: http://www.thehindubusinessline.com/2008/11/07/stories/2008110750890600.htm

Back Syndicate Bank looks to raise Rs 500 cr

Mr George Joseph

Our Bureau

Kolkata, Nov. 6 Syndicate Bank might look at raising Rs 300-500 crore Tier-II capital by way of subordinate bonds during the current fiscal, according to Mr George Joseph, Chairman and Managing Director of the bank.

“We may raise Rs 300-500 crore in order to fund our growth needs and boost our capital,” Mr Joseph told newspersons on the sidelines of Banking 2008, a seminar organised by the Confederation of Indian Industry, here on Wednesday.

The bank had plans to raise Rs 800 crore worth Tier-I capital through a follow-on public offer or by way of Qualified Institutional Placements. However, given the current volatile market conditions, the bank would not go for its fund raising plans at present, he said.

The capital adequacy ratio of the bank is at 11.55 per cent. Syndicate Bank, the Chairman said, was looking at a credit and deposit growth of 20 per cent each.