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Our Bureau

To help meet Basel II norms and continue business growth

MR C.P. SWARNKAR, Chairman and Managing Director

Manipal June 21 Syndicate Bank is planning to come out with a public issue during the current fiscal to meet the needs of Basel II requirements and to continue the growth in business, according to the Chairman and Managing Director, Mr C.P. Swarnkar.

Seeking approval from shareholders at the eighth annual general meeting at Manipal in Udupi district on Thursday, he said that the bank would initiate requisite preparatory work and seek the approval from the regulators and the Union Government after getting the same from shareholders.

"Because of our international operations, the bank is required to be Basel II compliant by March 2008. We have foreseen robust growth in our business. In order to continue the growth, we need higher capital.

To meet these two ends, and since there is headroom available, we are now proposing this public issue," he said.

The resolution for the follow-on public issue was approved on the occasion.

Mr Swarnkar said that the bank's paid-up capital was likely to touch Rs 601.97 crore (Rs 521.97 crore) after the public issue. With the public issue, the Government equity in the bank will come down to 57.63 per cent (66.47 per cent).

Mr Swarnkar said that plans are there to open branches in Tripura and Manipur, and the bank hopes to get a good number of licences for that. With the two new branches, the bank would be covering all the 29 states.

To a query on reverse mortgage scheme, he said that the bank will consider this when it finds necessary legal formalities and all other aspects are in place.

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