A recent press report said that City Union Bank Ltd (CUB) has informed BSE that it has been decided in the board of directors meeting, to augment capital up to Rs. 300 crore (inclusive of premium) through a process of qualified institutional placement.
Reports said that the bank is expecting to approach the shareholders for their approval in the annual general meeting as also to the applicable laws and regulations including the guidelines issued by the RBI. Dr N. Kamakodi, Managing Director, CUB, told the press that the additional capital will help the bank expand its lending by Rs 3,000 crore for the current financial year. He added saying that the approval for raising this qualified institutional placement was received last year during August
Reports said that the augmentation in capital by Rs 300 crore will increase the bank’s capital adequacy ratio by 150 basis points. The bank currently offers personal loan, car loan, educational loan, home loam etc.
Dr. N. Kamakodi, CMD of City Union Bank said that the bank had raised its both deposit and base prime lending rates (BPLR) a couple of weeks ago after the central bank’s monetary tightening move. He added saying that the bank has decided to review its situation by the end of this month or next month.