Govt may infuse capital of Rs.175 cr

 

Corporation Bank is planning to raise Rs.175 Cr from the government to meet the lender’s capital requirement. S R Bansal, chairman and managing director, Corporation Bank, said that during the fiscal, the government had infused Rs.450 Cr and will pump in another Rs.175 Cr by end of the fiscal. Speaking at the launch of bank’s SME loan centre in Chennai, Bansal said with the proposed infusion, the government’s stake will increase to 63% from the current 58%. Bansal said the bank would focus on retail, SME and agriculture. Currently, the retail portfolio accounts for 15% of the total credit portfolio and the plan was to increase it to 25% in the next 12 months. To boost lending to these sectors, specialized centres for each of the businesses are being set up across the country.