Canara Bank plans to raise $150 million via notes

Canara Bank is planning to raise $150 million by way of medium-term notes (MTN) in the near future. “We may raise another $150 million in the near future. The amount will be raised in dollar,” the bank’s chairman and managing director S Raman told DNA.

The bank had raised $ 350 million through issue of senior unsecured bonds under MTN programme in March through its London branch. “Our existing approvals permit us to raise another $1 billion,” said Raman.

In response to Reserve Bank of India’s hike in key policy rates by 50 basis points on Tuesday, Canara Bank has raised its base rate and benchmark prime lending rate on Thursday by 50 basis points to 10% and 14.25%, respectively.

Raman said that credit growth may slow down due to RBI rate hike.

But customers also have something to cheer about as Raman said his bank may increase fixed deposit rates in short tenures in the range of 6-12 months by 25-50 basis points.

Raman said one of the concerns in public sectors banks is lack of knowledge about the products which are already there and the solution was “to service the product”.

By March 31, 2012 Canara Bank is aiming a total business of Rs625,000 crore compared with Rs506,440 crore as on March 31, 2011.

The bank is eying deposits of Rs355,000 crore by the current fiscal end compared with Rs2,93,973 crore as on March 31, 2011.
While the bank is targeting advances worth Rs2,70,000 crore compared with Rs2,12,467 crore as on March 31, 2011.

The bank also plans to open branches in Manama, Qatar, South Africa, Germany, US, Brazil and Tanzania.