Canara Bank's captial adequacy much above RBI's benchmark:MD

Bengaluru: Managing Director and CEO of Canara Bank Rakesh Sharma today welcomed the Centre's move to recapitalise state-run-banks by diluting its stake to 52 per cent 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 per cent 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-three norm, has improved to 12.86 per cent, up from 11.08 per cent, a year ago with CET 1 ratio at 8.92 per cent and Tier one ratio at 9.77 per cent.

"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. Government's stake in Canara Bank is 63 per cent, he said. This fiscal, government has budgeted Rs 10,000 crore of capital infusion in public sector banks.

Asked to provide a list of companies which are defaulters of bank loans of over Rs 500 crore, Sharma said,"Sooner than later, we will know about the entire list of defaulters of at least top 15.

If RBI is willing to disclose these names, they will come out with those names very soon." The Supreme Court had directed RBI to provide a list of firms which are defaulters of bank loans of over Rs 500 crore while expressing serious concern over the rise in bad loans.

The apex court had also asked RBI to provide within six weeks a list of companies whose loans have been restructured under corporate debt restructuring schemes. A bench headed by Chief Justice T S Thakur asked for the list of loan defaulters to be placed before it in a sealed cover.