ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Railways
  • World
    • Economy
    • Politics
    • Markets
  • Survey
  • videos
  • photos
  • More ...
    • VIDEOS
    • PHOTOS
BREAKING NEWS
  • Stock Market Outlook: Our dependence on US market limited now, next 10-15 years belong to India, says Anil Singhvi | Here's why
  • Toyota Hyryder Unveiled: Toyota India unveils new self-charging hybrid electric SUV in India; check details
  • Virtual Digital Assets: VDAs to attract 1% TDS from today; know what CBDT says about new norms
  • Gold Price Today: Yellow metal surges by over Rs 1000 as excise duty hiked to 12.5% - check gold rate in your city
  • Monsoon session of Parliament to begin on July 18; to end on August 12
Read in App
Business News » India News

Central Bank of India plans to raise Rs 5,000 cr this fiscal to meet Basel III norms

As per the Basel III regulations, Central Bank said, it will be required to maintain minimum common equity tier I ratio of 5.50 per cent and capital conservation buffer of 2.50 per cent in the form of equity capital, and tier I ratio of 9.50 per cent and overall CRAR (capital to risk weighted assets ratio) of 11.50 per cent by March 31, 2020.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Central Bank of India plans to raise Rs 5,000 cr this fiscal to meet Basel III norms
Central Bank of India (CBI) is planning to raise up to Rs 5,000 crore in the current fiscal through various means, Photo: PTI

Central Bank of India (CBI) is planning to raise up to Rs 5,000 crore in the current fiscal through various means, including rights issue and FPO, to meet Basel III norms by March 2020.

The bank will raise capital through follow on public offer, rights issue or qualified institutional placement (QIP) and will seek permission from shareholders in the ensuing annual general meeting to be held on June 28, it said in its annual report 2018-19.

The bank will create, offer and allot such number of equity shares up to the value of Rs 5,000 crore, whether at a discount or premium to the market price, in one or more tranches, it said.

As per the Basel III regulations, Central Bank said, it will be required to maintain minimum common equity tier I ratio of 5.50 per cent and capital conservation buffer of 2.50 per cent in the form of equity capital, and tier I ratio of 9.50 per cent and overall CRAR (capital to risk weighted assets ratio) of 11.50 per cent by March 31, 2020.

"The Bank will be requiring capital to meet the prescribed capital adequacy ratio (CAR) on ongoing basis. Therefore, your directors have decided to raise equity capital up to Rs 5,000 crore through various modes such as - Follow-on-Public Issue, Rights Issue, Private Placement including qualified institutions placements," said the report.

The capital will be utilised for the general business purposes, the bank said.

The lender registered a widening of its net loss at Rs 5,641 crore during 2018-19 as against Rs 5,105 crore in the preceding fiscal due to high level of bad loans and provisions for them.

Whereas, the gross non-performing loans stood at 19.29 per cent at the end of March 2019, the net bad loans ratio stood at 7.73 per cent. In 2017-18, the gross bad loans were 21.48 per cent, while net NPAs were 11.10 per cent.

Total income during 2018-19 also fell to Rs 25,052 crore as compared to Rs 26,659 crore a year ago.

Due to high net NPA and negative return on assets, the RBI had put the lender under its prompt corrective action (PCA) framework in June 2017.

"Bank believes that corrective measures arising out of the PCA will help in improving overall performance of the bank," it said in the report.

It also said NPA management is the core focus areas and it will cut down bad loans through cash recovery, upgradation, compromise settlement.

It will also employ other recovery measures, including sale of NPA accounts to asset reconstruction companies, resolution through NCLT/IBC, recovery in written-off accounts as well as speeding up recovery process through DRTs in time-bound manner.

"Asset quality continued to be the major concern of the banking industry in general and particularly in the bank for last 3-4 years. By putting concerted efforts, we were able to make cash recovery and upgradation of Rs 5,656 crore in 2018-19 as against Rs 3,122 crore in 2017-18.

"We expect resolution of certain big NPA accounts through National Company Law Tribunal under IBC during 2019-20. We shall continue to have focused efforts to maximize NPA recovery, improve asset quality and earn net profit during the year 2019-20," Central Bank of India MD and CEO Pallav Mohapatra said. 

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Central Bank of India
Written By: PTI
Updated: Sun, Jun 09, 2019
01:06 pm
New Delhi, PTI
RELATED NEWS
Bank privatisation may gather pace as government plans to pass Banking Law Amendment Bill in upcoming Monsoon Session: Sources Bank privatisation may gather pace as government plans to pass Banking Law Amendment Bill in upcoming Monsoon Session: Sources
BOB, J&K Bank, Central Bank hike interest rates; Zee Biz report BOB, J&K Bank, Central Bank hike interest rates; Zee Biz report
Q4 Results 2022: Central Bank, UPL, PVR, BLS International, Suven Pharma announce March quarter results; here are key highlights Q4 Results 2022: Central Bank, UPL, PVR, BLS International, Suven Pharma announce March quarter results; here are key highlights
ICICI, BoB, BoI, Central Bank revise lending rates after RBI's repo rate hike ICICI, BoB, BoI, Central Bank revise lending rates after RBI's repo rate hike
Central Bank of India, U GRO Capital ink co-lending deal; aim Rs 1,000 crore disbursal Central Bank of India, U GRO Capital ink co-lending deal; aim Rs 1,000 crore disbursal

LATEST NEWS

Big tech firms offering financial services pose risk to financial stability: RBI

Food labelling rules for online food delivery platforms like Zomato, Swiggy changed from today; compliance failure to invite action

EXCLUSIVE: Start investing in large-cap stocks, Invest in IT, Auto, Capital Goods, and Private Bank stocks says the market expert

GST Council Meeting: Full details of goods and services, where rates hiked or slashed

''Increase in import duty on gold, will not have major impact on demand''

Opening Bell: Nifty slips below 15,700, Sensex sheds over 350 points; Auto, Consumer Durables worst hit

Stocks to Buy: Sanjiv Bhasin recommends Aarti Industries, Bank of Baroda, Tata Steel; Know the details

Stock Market Outlook: Our dependence on US market limited now, next 10-15 years belong to India, says Anil Singhvi | Here's why

UPI transactions remain above Rs 10 lakh crore in June for second month in a row: NPCI data

WhatsApp: Here is why over 19 lakh Indian accounts banned in May

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2022. India Dot Com Private Limited. All Rights Reserved.
LIVE TV