Canara Bank CEO flags early festival demand, eyes capital raise

Brajesh Kumar Singh, Chief Executive Officer of Canara Bank, has signaled that festival-driven business activity is beginning to gain momentum earlier than usual this year. The remarks suggest the bank is positioned to capitalize on increased lending demand typically associated with the festive season.

Singh indicated that the bank expects improvements across its treasury and forex operations in the coming months. These segments have traditionally been sources of non-interest income for the lender, and improved performance would bolster overall profitability.

To support its growth initiatives and strengthen its balance sheet, Canara Bank has set an ambitious target to raise ₹8,500 crore in fresh capital during the current fiscal year. The capital infusion is expected to enhance the bank's lending capacity and provide greater flexibility for business expansion.

The capital-raising exercise comes at a time when Indian banks are increasingly focusing on strengthening their reserves to meet regulatory requirements and fund credit growth across the economy. Canara Bank's move reflects the broader trend among public sector lenders to shore up their capital bases as credit demand remains robust.