InvestorQ : Why is Central Bank looking to raise Rs.5000 crore from the market?
Riya Dwivedi made post

Why is Central Bank looking to raise Rs.5000 crore from the market?

Answer
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rhea Babu answered.
3 months ago


Central Bank plans to raise Rs.5,000 crore of equity via a mix of public offers and rights issues to boost its Tier-1 equity. The bank would ideally look at the QIP route to raise funds without having to approach the public. As per Basel III regulations, CBI has to maintain Tier-1 ratio of 9.50% and overall CRAR of 11.50%.

CBI will require capital to meet the CRAR norms, for which the board has approved the raising of Rs. 5000 crore. The enhanced capital will be utilised for general business purposes of the bank and also to create a buffer once the moratorium is lifted in India. Asset quality continued to be a major concern. CBI net loss narrowed to Rs.1121 crore in FY20.