Canara Bank to rise Rs. 2,000 crores through QIP

Canara Bank QIP: The Bank to raise Rs. 2,000 crores through QIP

Canara Bank QIP: The Bank to raise Rs. 2,000 crores through QIP

Canara Bank QIP: The Government-owned largest public sector bank Canara Banks plans to raise around Rs. 2,000 crores through the Qualified Institutional Placement issue. Moreover, the issue will be launched in early December 2020. This year, it will be the first one that raises equity capital from the stock market.

As of the source, ICICI, SBI, Axis Capital, and JM Financial will be the lead managers to the issue. Moreover, the moneylender has already started the initial work for the launch of the issue.

According to the source, the officials of the bank said that the bank has happy with the current capital. But, the plan of capital raising will help to build the business in the Future. Moreover, they also said that the bank will commence the QIP issue when they can.

In earlier this fiscal, the bank was merged with Syndicate Bank. On account of the central board plans to consolidated banks into the largest entities. With this move, Canara Bank is the fourth-largest lender after SBI, PNB, and BOB. 

According to the financial reports, the bank has reported a net profit of Rs. 406 crores for the Q1 of FY21. Besides, the Q1 profit raised by 24% from the earlier this year’s profit of Rs. 329 crores. As of June 2020, the bank’s common equity capital stood at 8.15%. During the same period, the Net NAP stood at 3.95%.

As per the source, the Canara Bank will commence the roadshow for the issue from the Mid-November. Before this move, the bank plans to release the second-quarter (Q2) earnings results.

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