Private sector lender City Union Bank on Wednesday mentioned that it plans to lift Rs 500 crore through a certified institutional placement (QIP). The financial institution will search the approval of its shareholders for the proposed QIP difficulty in its annual normal assembly on August 18.
“As done in the previous years, this year also we are seeking approval of shareholders by way of an enabling resolution. It may be recalled that last year also we obtained the approval of shareholders for raising capital through QIP but we have not utilised the same,” the financial institution mentioned in an trade submitting.
The board of the Tamil Nadu-based financial institution has accepted the fund elevating proposal as an enabling decision. The financial institution has not diluted any capital within the final 7 years. The final time the lender raised the funds by the QIP route was in July 2014 to the tune of Rs 350 crore, N Kamakodi, managing director and chief government officer of the financial institution, had earlier mentioned in an analyst name.
The financial institution’s capital adequacy ratio improved to twenty.85% for FY22 in comparison with 19.52% within the earlier yr. The increased capital adequacy is principally due to progress from gold loans, which carry zero threat weight, Kamakodi had mentioned. As on March 31, the financial institution’s gold mortgage portfolio has elevated by 38% to Rs 9,003 crore from Rs 6,540 crore within the earlier yr. Gold loans comprise 22% of its gross advances, which stood at Rs 41,156 crore.
Source: www.financialexpress.com”