Corp Bank may require up to Rs 1600cr more capital

State-owned Corporation Bank today said it would require up to Rs 1,600 crore in additional capital in 2013-14.

"We are well capitalised in the current year 2012-13 even under Basel III norms. We will require additional capital from next year and in a severe condition the need will be Rs 1,600 crore," Corp Bank chairman and managing director Ajai Kumar told reporters on the sidelines of FICI organised banking conclave.
Explaining the 'severe conditions', Kumar said the capital requirement would depend on requirement to maintain risk-weighted capital and even on the higher side the bank would need Rs 1,600 crore capital.
The bank was keeping all options open including capitalisation from the government to raise the fund. The bank now has CAR of 12%.
Speaking about bulk deposit diktat of the banking regulator, Kumar said the bank would not be able to bring down the bulk deposit to 10% by March 2013 from the close to 40% now.
He indicated that he would seek more time to meet the guidelines.
Kumar said the bank expected that there would be more slippage during the year and net NPA could rise to around 1.25% in 2012-13.