InvestorQ : Why is Canara Bank looking to raise additional equity capital at this point of time?
shrinidhi Rajan made post

Why is Canara Bank looking to raise additional equity capital at this point of time?

Answer
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1 month ago


Canara Bank has secured board approval for raising additional equity capital to the tune of Rs.2000 crore through the QIP route. Of course, the qualified institutional placement will be will within the overall approved limit of Rs.5000 crore for the fiscal year 2020-21.

The private placement fund raising will be augment its capital resources as it will have to write off part of its dues when it goes for the 2-year restructuring plan with its corporate clients that are stressed. It also allows them to expand their loan books aggressively.