A recent press report said that the State owned Corporation Bank has sought Rs.300 crore capital supports from the government to fund business growth.
Mr.Ramanath Pradeep said that the bank had requested for capital infusion, the government will consider the same when it reviews the banking sector as a whole. He also said that the bank has made a small request of Rs.300 crore and the same will be by way of tier I capital. The bank doesn’t need to raise capital at this point of time as the capital adequacy ratio is 14 per cent he added.
He further said that because the bank has introduced very robust monitoring mechanism and system and the bank intends to become zero net NPA bank by the end of the current fiscal. Further the net non performing asset level of the bank stood at 0.47 percent at the end of June 2011. About the loan growth, Mr.Pradeep said that there is a possibility of moderation in credit growth on account of rising interest rate.