Central Bank of India plans to raise Rs 400 crore through a bond issue in two months, and may also get Rs 700 crore as fresh capital from the government.
Speaking on the sidelines of a conference to launch a loan product, Chairman and Managing Director S Sridhar said that the bank would raise funds through Tier-II bonds in the next two months. He said, “We are expecting to receive Rs 700 crore from the government as Tier-I capital under the recapitalisation plan by March 31.” He added that the funds so raised will be used to meet capital adequacy and expansion requirements over the next few years.
In answer to query about interest rates, Mr. Sridhar said that lending rates were likely to remain stable until March.
Another recent development in the lab is the launch of a reverse-mortgage loan annuity product, association with Star Union Dai-ichi Life Insurance. The scheme, that would provide regular income to senior citizens throughout their lives against the house as an asset is open to senior citizens above the age of 60.
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