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Wednesday, February 4, 2015

Syndicate Bank plans to raise Rs. 2,100 cr

Syndicate Bank is planning to raise Rs. 2,100 crore capital soon, according to its Executive Director, T K Srivastav.

Speaking to BusinessLine on the sidelines of a meeting with micro, small and medium enterprises (MSME) customers organised by the bank here on Tuesday, the official said that the proposed capital would be raised by way of tier I capital and bonds.

"`We are in the process of completing necessary approvals and the mobilisation of capital or part of it could happen before "the end of March this year,''’ he added.

On the likely impact of cut in statutory liquidity ratio from 22 per cent to 21.5 per cent by the Reserve Bank of India on Tuesday, he said it was a good indication for future.

For Syndicate Bank, however, the credit growth was 'good' at 17 per cent which was being driven largely by the retail and MSME segments.

A segmented approach with a special focus on a particular customer category each week is being followed for better focus. "We have been marketing special loans for doctors, textiles, transport operators, marble trading and women entrepreneurs, among others. Last month, we have disbursed Rs. 18,000 crore loans for women entrepreneurs,’’ Srivastav said.

On the asset quality front, Syndicate Bank does not see any immediate cause for alarm as it has gross and net non-performing assets of 3.42 per cent and 2.2 per cent, respectively at the end of second quarter of the current financial year.

"In the quarter ended December 2014, we will be almost in a similar situation,'' the official added. The board of directors of the bank will be meeting on February 10, 2015 to finalise the third quarter numbers.

Source : Thehindubusinessline


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