Canara
Bank to raise $100 million via bonds in March
Our
Banking Bureau
6 March 2007
New
Delhi: Canara Bank plans to raise $100 million through
hybrid instruments during this month through its Hong
Kong branch. The process is expected to be completed
before the end of this fiscal.
The
capital adequacy ratio (CAR) of the bank currently stands
at 12.4 per cent and the bank expects to maintain this
in the future.
Canara Bank has also announced setting up an insurance
joint venture with the Oriental Bank of Commerce (OBC)
and HSBC Insurance in which Canara Bank will have a
majority stake of 51 per cent.
Canara
Bank would control the proposed insurance joint venture
with 51 per cent stake, while OBC would hold 23 per
cent stake and HSBC the remaining 26 per cent - the
maximum permissible limit for foreign partners under
the present regulatory system.
The
new life insurance company will have a paid up capital
of 
Rs325
crore of which HSBC will contribute Rs170 crore, which
includes premium for accessing the vast branch network
of public sector banks.
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