Speaking to CNBC-TV18, Kishore Sansi, MD & CEO of the bank says that the capital adequacy ratio (CAR) will rise to 11.5 percent post the share issue.
This is the third base rate cut this week with HDFC Bank paring rates to 9.35 percent effective Tuesday and Canara Bank trimmed rates to 9.9 percent effective Thursday.
HS Upendra Kamath, CMD, Vijaya Bank said there would be an beneficial impact on the overall cost as a result of the reduction in the marginal standing facility (MSF) rates, the reduction in the daily maintenance of CRR.
Even though there is no such big threat for rating downgrades, according to Ananda Bhoumik – Director India Ratings, the domestic arm of global rating agency – Fitch; non-performing loans (NPLs) are expected to rise till September, 2013.
Ananda Bhoumik of India Ratings & Research however, does not feel that there is a likelihood of a ratings downgrade of banks at this stage. He acknowledges the fact that asset quality problems mainly persist with mid-sized public sector banks and believes Canara Bank is going through a turbulent phase at the moment.
Top bankers in the country met on Monday to ensure that the mechanism of CDR is appropriately utilized for reviving the units which need help and rehabilitation from the system.
In an interview to CNBC-TV18, HS Upendra Kamath, chairman of Vijaya Bank says, he expects 18-20% credit growth in FY12.