Kolkata, June 28 (IANS): State run lender Allahabad Bank is looking to achieve a business growth of Rs 12.23 per cent in the current financial year and is also planning to raise capital up to Rs 2,000 crore, a top official said here on Wednesday.

"The bank is looking to achieve a year-on-year business growth of 12.23 per cent and reach a level of Rs 4.05 lakh crore by the end of FY 18 (2017-18). We are looking at a growth of 13.45 per cent and 10.68 per cent in deposits and credit respectively," Allahabad Bank's MD and CEO Usha Ananthasubramanian said while addressing the shareholders of the bank at the 15th Annual General Meeting (AGM) here.

She said the bank would primarily focus on building up low cost deposits or CASA deposits and would continue to discourage reliance on high cost deposits.

In terms of capital adequacy, she said, "...the bank is fairly placed given the business growth and the environment we are operating. But I would not say we are very comfortable....we need to raise capital."

At a special business resolution, the bank has sought shareholders' nod in the AGM for raising equity capital aggregating up to Rs 2,000 crore through different modes like QIP or FPO or Rights issue etc.

Speaking on the readiness of the bank before the roll-out of the Goods and Services Tax (GST), she said the bank has registered itself in 30 states and union territories.

"We are making all the necessary changes in the CBS (core banking solution). We have been sensitising the staff for the GST implementation. Of course, any new implementation will have its own glitches and we will be addressing them. The tax will be increased from 15 per cent to 18 per cent and bank will get input credit on the expenses," she added.

Ananthasubramanian said the lender has targeted aggressive recovery of over dues from the borrowers in the current fiscal and it is exploring new and innovative ways to reach to NPA (non-performing asset) borrowers to extract what is due.

"Selling chronic NPA accounts to assets reconstruction companies would also be on our agenda," she said.

In terms of net profit, the quantum of losses decreased in FY17 (2016-17) as provisions were lower by 14.29 per cent and there was an increase in non-interest income levels. Net loss decreased to Rs 314 crore in 2016-17 as compared to a net loss of Rs 743 crore a year ago, she added.