Public sector Corporation Bank has sought about Rs 300 crore from the Central Government to augment its future credit growth, and hopes to get the funding by the fiscal-end.

“By the year-end, if our credit grows above 22 per cent, we might need some support from the Government and they have also conceded,” Mr Ramnath Pradeep, Chairman and Managing Director, Corporation Bank, told Business Line . According to him, the bank, which had earlier projected a 25 per cent credit growth, has now lowered its credit off-take target to 20-22 per cent.

The bank's capital adequacy ratio is over 14 per cent, with a tier-I capital of above 8 per cent, he pointed out.

Corporation Bank has Tier-II headroom of about Rs 2,000 crore, he said, adding that going to the market was not a good option currently, as “the rates are not good, and there is no pressure on our finances currently”.

Organisational re-jig

As part of its efforts to achieve a total business of Rs 5 lakh crore by 2015, the bank has undertaken a re-jig of its organisational structure. “We have created four verticals — corporate, mid-corporate, SME and recovery — and have also increased our zonal offices from 19 last year to 31 now,” said Mr Pradeep.

The bank also plans to open 200 branches every year. This fiscal, 50-60 branches have already been added to the network, he said.

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