After negative growth, Syndicate bank expects 2% growth this
State-owned Syndicate Bank, which saw a negative growth in the last two quarters, is expecting to achieve a two per cent growth this financial year, Bank Managing Director and CEO, Mrutyunjay Mahapatra said Tuesday.
The bank had de-grown in the last six months (two quarters) this fiscal of 2018-19, particularly due to some NPAs and also due to waivers of loans in agriculture sector, Mahapatra told reporters here.
The bank is not under capital pressure and could afford to wait till the market sentiments improve, he said.
Mahapatra said the Bank's Capital Adequacy Ratio is 12 per cent and looking at a growth capital of Rs 500 crore to Rs 1,000 crore.
The bank has plans to raise Rs400 crore to Rs500 crore under the Employee Share Purchase Scheme, by giving shares to employees 20 to 25 per cent less than the market prices, he said.
The bank is also contemplating issue of Rights share or tier-I bonds by the end of the last quarter of the current fiscal, he said.
To a question on NPA, Mahapatra said the bank has exceeded in its recovery, particularly from corporates, which stood at Rs 3,700 crore against the targeted Rs3,000 crore.
"We were seeing some bottoming out of corporate NPAs, but because of farm loan waiver, we had to provide for Agri-NPA, during the third quarter," he said.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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