State-run Canara Bank on May 28 said it plans to raise capital of up to Rs 9,000 crore in FY22.
The Board has approved the capital raising plan of the bank for the Financial Year 2021-22 amounting up to Rs 9,000 crore by way of equity and debt instruments, the bank said in a statement.
The Board of Directors of the bank has approved to raise equity share capital amounting up to Rs 2,500 crore by way of Qualified Institutional Placement (QIP) during the Financial Year 2021-22 out of the above Rs 9,000 crore, the bank said.
RB Governor Shaktikanta Das had recently said banks need to beef up their capital base to guard against the COVID impact. A lot of banks have made their plans public to raise capital.
Banks require additional capital to set aside against bad loans and to do additional lending. Also, banks need to meet the mandatory reserve ratio requirements.