Central Bank of India will require capital of Rs 1,200 crore to fund its growth needs this year. The bank aims to achieve 20 per cent credit growth in 2012-13.
According to M. V. Tanksale, Chairman and Managing Director, Central Bank of India, the bank will approach the Union Government for infusion of Rs 700 crore this year.
“We will need Rs 1,200 crore worth capital. We will be requesting the Government to infuse Rs 700 crore and the rest will be way of internal accruals.
“We also have headroom in Tier II for raising capital,” Tanksale told newspersons on the sidelines of a banking conclave organised by the Federation of Indian Chambers of Commerce and Industry here on Friday.
Central Bank plans to float a subsidiary in Mozambique to establish its presence in Africa. “We are looking at a 50:50 joint venture with Punjab National Bank. We are waiting for the Government’s mandate in this regard. We hope to float it by the end of this year,” he said.
The bank also plans to set up a representative office in Kenya in the next three months. This apart, it has also applied to the Reserve Bank of India for an office in Dubai.
Later, while addressing an interactive session organised by MCC Chamber of Commerce and Industry, Tanksale said the bank was planning to realign and relocate some of its ‘sick’ branches to turn them profitable.
“If two branches are located very nearby, one of them is bound to be non-performing. We are trying to see if the sick branches can be made profitable by relocation and realigning,” he said. He, however, did not divulge further details on the number of such branches to be realigned.