Canara Bank’s captial adequacy much above RBI’s benchmark: MD Rakesh Sharma

Managing Director and CEO of Canara Bank Rakesh Sharma on Monday welcomed the Centre’s move to recapitalise state-run-banks by diluting its stake to 52% once the health of the lenders improve.

“It is a good move. Yes, we welcome it, but for now my bank is in comfortable position as its capital adequacy is much above the Reserve Bank of India’s benchmark,” he said.

He was speaking to reporters at its Fourth Quarterly results announcement here.

At Tokyo today, Finance Minister Arun Jaitley at a CII-Kotak investor roundtable said government will dilute its stake in state-run banks to 52% once health of the lenders improve and the money will be used to inject capital in them.

Sharma said Canara Bank’s capital adequacy ratio, as per basel-III norm, has improved to 12.86%, up from 11.08%, a year ago with CET 1 ratio at 8.92% and Tier one ratio at 9.77%.

“The bank, during this financial year, has raised Rs 5124 crore total capital, comprising equity capital Rs 1124 crore from rights issue, and its tier one capital is at Rs 1000 crore and tier two capital is at Rs 3000 crore. Therefore, Canara bank is in a comfortable position in terms of capital adequacy,” he added.

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