Canara Bank to cut equity by Rs 278 crore
Our Banking Bureau
20 August 2002

Mumbai: Canara Bank has decided to reduce its equity capital by Rs 278 crore and return the money to the government.

“We have written to the government a month ago for reducing the bank’s equity capital by Rs 278 crore. After the reduction in the capital, a fresh equity of Rs 110 crore will be issued through an initial public offering (IPO),” Canara Bank chairman and managing director R V Shastri said.

Speaking to newspersons at the launch of the new schemes of Canbank Mutual Fund, a subsidiary of Canara Bank, he said after repaying the capital to the government, the paid-up capital of the bank will be Rs 300 crore. On the timing of the IPO, Shastri said: “First we are waiting for the government approval for capital reduction and after that only the IPO would come.”

He, however, said the bank has decided to issue a fresh equity of Rs 110 crore (without premium). On the future plans for the bank, Shastri said: “Our plan is to emerge as a financial super powerhouse and provide all kinds of financial services to our customers. And our objective is to provide our customers all the services at one place. The plan will be implemented in 2003-04.”

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