A recent press report said that Corporation Bank has sought about Rs 300 crore from the Central Government to augment its future credit growth, and hopes to get the funding by the fiscal-end.
Mr. Ramnath Pradeep, Chairman and Managing Director, Corporation Bank, told the press that the bank might need some support from the Government if its credit grows above 22 per cent by the end of the current fiscal.
He said that the bank has now lowered its credit off-take target to 20-22 per cent from 25 per cent. He added saying that the capital adequacy ratio is over 14 per cent, with a tier-I capital of above 8 per cent.
He said that the bank has Tier-II headroom of about Rs 2,000 crore, and so going to the market was not a good option as the rates are not good, and there is no pressure on our finances currently.
The bank has planned to open 200 branches every year and this fiscal, 50-60 branches have already been added to the bank’s network. Its branches offers advances such as home loan, personal loans, vehicle loan, business loans etc.