State-run Canara Bank will raise up to Rs 5,000 crore equity capital through various modes in the current fiscal year to boost its capital adequacy ratio in view of expansion plans, and will seek nod from shareholders for the same in its AGM next month. In view of certain expansion plans of the bank, the implementation of Basel III norms, and consequent capital charge, there is a need to increase the capital to further strengthen the capital adequacy ratio, Canara Bank said in its annul report for 2019-20.
The bank will seek shareholders’ nod at the annual general meeting to be held on August 10 through audio/visual means in view of the coronavirus pandemic. The Bengaluru-headquartered lender, which amalgamated Syndicate Bank into itself with effect from April 1, 2020, has Rs 1,030.23 crore as equity capital currently and its capital adequacy ratio stood at 13.65% as on March 31, 2020, well above the regulatory requirement of 10.875%.