Speaking to CNBC-TV18, N Kamakodi, MD & CEO, City Union, said that the total application money is expected to be around Rs 128.5 crore. For financial year ending March 31, 2013 the company's capital adequacy ratio would be between 14-14.5 percent.
Further, the company may require another Rs 900-1,000 crore capital infusion over the next three-four years. "We currently have loan book size of Rs 12,000 to Rs 13,000 crore and it is expected to increase to about Rs 30,000 crore by 2015-2016, so we need money to support that," he elaborated.
City Union Bank is expected to clock a loan growth of around 25 percent in FY13. Meanwhile, Kamakodi is not very hopeful that the RBI will cut rates tomorrow.
Below is an edited transcript of N Kamakodi's interview on CNBC-TV18.
Q: What does the right issue proceeds mean in terms of capital adequacy for you? For how much will you be adequately funded once these rights issue proceeds come in?
A: The total application money will be about Rs 128.5 crore and total issue size is about Rs 250 crore. For financial year ending March 31, 2013 we will be having our capital adequacy ratios somewhere between 14-14.5 percent.
Q: You are expecting full subscription; you don't have an identifiable promoter so it depends on whether your issue would be worth subscription at Rs 20, what if you got less? Would you take some other means to improve your capital adequacy or will you just take what you get?
A: Do you feel that investors are not smart enough to invest when the issue price is Rs 20 and market price is Rs 55-56.
Q: Post issue capital is not going to be Rs 20? Post issue your equity is going to expand, so will Rs 56 be the price of City Union?
A: The price is already after ex-rights only.
Q: What is your equity expansion?
A: It is Rs 40 crore to Rs 50 crore, one share for every four shares held.
Q: Is it a 25 percent increase in shares outstanding?
A: Yes.
Q: Any guesses on what Reserve Bank does tomorrow?
A: There will be only 25 basis point cut in the cash reserve ratio (CRR) and we don't expect any rate cut tomorrow.
Q: Can you come again about your capital adequacy? What will it increase to after the rights issues?
A: It will be between 14-14.5 percent.
Q: What is your loan growth?
A: This year our loan growth should be around 25 percent. For the last five years, the compound annual growth rate (CAGR) is also about 25-27 percentage.
Q: When will you next require capital?
A: We will be requiring an infusion of another Rs 900 to Rs 1000 crore over a period of next three years because we currently have Rs 12,000 to Rs 13,000 crore of loan book size which we expect, under this growth rate will increase to about Rs 30,000 crore of loan book by 2015-2016, for which we will be requiring about Rs 3,000 crore of capital to support.
After this we have about Rs 1200 crore and another Rs 1000 crore will be through retained profits which leaves about Rs 800- Rs 900 crore to be infused over a period of three-four years for which we are taking steps.
Q: What is the price-to-book?
A: It is close to 2.
Anda sedang membaca artikel tentang
Expect FY13 loan growth to be around 25%: City Union Bank
Dengan url
http://kebugaranhidup.blogspot.com/2012/12/expect-fy13-loan-growth-to-be-around-25.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Expect FY13 loan growth to be around 25%: City Union Bank
namun jangan lupa untuk meletakkan link
Expect FY13 loan growth to be around 25%: City Union Bank
sebagai sumbernya
0 komentar:
Posting Komentar