Canara Bank has firmed up plans for a ₹3,000-crore QIP (qualified institutional placement) offer which is likely to hit the market sometime next month after a formal nod during its Annual General Meeting slated for July 21.
The Bangalore-headquartered State-owned bank is also considering a follow-on public offer (FPO) sometime next year.
He said the bank’s gross non-performing assets are pegged at 2.49 per cent and net NPAs at 1.98 per cent.
“We expect both the gross and net NPA levels to come down by March next with better recoveries,” he said.
Clouds of uncertainty Generally, the recoveries are good across the country barring a couple of States, including Andhra Pradesh and Telangana, post the announcement of reschedule/ waiver by the Governments.
However, the announcement by these States has created confusion among farming community, he said.
“Farmers have either stopped paying or delaying payments, having a direct bearing on fresh lending. However, fresh lending has not stopped,” he said.
“Ï hope this cloud of uncertainty is cleared so that things revert to normalcy. We have 350 branches, have big presence in these two States and are in the process of adding more circles,” he said.
On loans to the infrastructure sector, he said for most of the companies lending is highly leveraged and infrastructure is faced with stress. Most of them have rescheduled their loans through the corporate debt restructuring route. With the Government laying thrust on improving the infrastructure sector, he said, “We expect things will get better.”