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M.V. Tanksale in Calcutta on Friday. A Telegraph picture
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Calcutta, Aug. 10: Public sector Central Bank of India will need to infuse around Rs 1,000-1,200 crore in this fiscal to maintain its tier 1 capital, chairman and managing director M.V. Tanksale said today. He was speaking on the sidelines of a banking seminar organised by Ficci.
“Our capital adequacy ratio is around 12 per cent and the cash infusion is basically required to manage the tier 1 capital at 8 per cent,” he said.
“In our bank, the government holding is 79 per cent. We are expecting about Rs 700 crore of this to come from the government.”
Tanksale is hopeful of substantially shedding bulk deposits next year in line with the finance ministry’s directive to cap them at 15 per cent of total deposits.
“Our share of bulk deposits is around 31 per cent of total deposits. We are definitely looking to shed it substantially and meet the expected level of 15 per cent,” he said.
Usually, deposits of Rs 5 crore or higher with interest rates above the rate offered to retail depositors are classified as bulk deposits.
The finance ministry’s move came after PSU banks started to mobilise these deposits to finance their business growth.
Tanksale said the bank was looking to expand its network and strengthen overseas business. The PSU lender plans to add 250 branches this year.
“We are looking to open a representative office in Kenya within three months,” he said.
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