January 5, 2018 / 10:40 AM / a year ago

Canara Bank hires four for Rs35bn share sale

SINGAPORE, Jan 5 (IFR) - India’s state-owned Canara Bank has hired Edelweiss, Jefferies, ICICI Securities and SBI Capital for a share sale that could raise up to Rs35bn (US$552m), two people with knowledge of the transaction said. The qualified institutional placement is likely to hit the market before March 31. Canara Bank said its board had approved the share sale on December 26. It is selling the shares to shore up its Tier 1 capital. India’s public sector banks are raising funds to bolster their balance sheets after a spike in non-performing loans. Canara reported gross bad loans at 10.51% of all lending at the end of September, down slightly from 10.56% three months earlier. Bank of Maharashtra, Punjab National Bank, Syndicate Bank and Union Bank of India raised a total of Rs84bn through share sales last year. Canara Bank shares rose 41% in 2017 and are up 0.2% year to date. (Reporting by Anuradha Subramanyan; Editing by Steve Garton)

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