The Hindu Business Line : Syndicate Bank mulls bond issue to raise Rs 250 cr

THE public sector Syndicate Bank is planning to raise Rs 250 crore for strengthening its Tier Two capital preparatory for the credit expansion during the peak season beginning next month.

Briefing reporters here on Monday, Mr Michael Bastian, Chairman and Managing Director of Syndicate Bank, said that the pricing of the bond issue was not yet decided and would be finalised sometime next month.

Mr Bastian, who relinquishes office this month end, said that the business target for the bank was fixed at Rs 85,000 crore for the current financial year. In the first quarter of this year, the business clocked was 41 per cent more than the corresponding period of the last financial year.

Net profits also showed considerable improvement during the period from Rs 79 crore to Rs 125 crore.

Mr Bastian, who took over in 2002, has completed 24 months in office. At the time of his assuming office, the bank's earnings per share was Rs 6.70. Syndicate bank's EPS is currently Rs 10.60.

Referring to suggestions of mergers in the banking industry as a method of consolidation, he said, " Unless labour policies are addressed, bank mergers are not likely to yield major benefits." He said that mergers globally had resulted in job losses. This was something that would have to be addressed, he added.

More Stories on : Corporate Bonds | Public Sector Banks

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
StanChart inks factoring deal with Bharat Forge

Centrality of innovation for banks

Rupee tad weaker; bond prices drop

SBI hikes home loan rates

A move to `fix' the loan shift

To offer free mediclaim cover — Medicine Shoppe in pact with Oriental Insurance

RBI may dip into forex kitty to combat inflation

`Slowdown in public investment hits farm growth'

Take in more overseas partners, BPO units told

Seven banks to tie up with SIDBI
For VC fund, rating venture

Union Bank LGs for MCX members

Dena Bank ED

Kanara Chamber for better management of KUIDFC

SBT revises FCNR rates

Syndicate Bank mulls bond issue to raise Rs 250 cr