Canara Bank plans to raise Rs.5000 crore via equity to boost its capital adequacy. This will be in sync with the plans to aggressively build its loan book. Canara will seek shareholder approval at the AGM on August 10. Post the amalgamation of Syndicate Bank, it has Rs.1,030 crore as equity capital currently and capital adequacy of13.65%.

In the next few years, Canara Bank will leverage its amalgamation of Syndicate Bank to maximize its efficiency and productivity. For the FY20, Canara posted a net loss of Rs.2236 crore on account of a surge in provisions. The gross NPAs at 8.21% is still high but these levels have come down on a YOY basis, opening the gates to start expanding the book.