Public sector bank, Corporation Bank has set a good target for itself this fiscal. The bank aims at growing its loan book by 25% and deposits by 22% in the FY'11. This target has been set by the bank owing to demand from the retail and infrastructure sector, a senior official of the bank said.

The bank has a capital adequacy ratio of 15.37% as on 31st March this year. Capital adequacy ratio is a measure of the bank's capital fund to its risk weighted assets expressed in percentage terms.

It has plans to seek Government approval in the September quarter to raise capital worth Rs. 3000 crore via rights issue or a follow on public issue, J.M. Garg, chairman and managing director of the bank said.

"We expect a credit pick-up in the retail segment. Demand is also expected from infra sectors like roads, power and ports. We also expect demand from capital goods and pharmaceuticals," Garg quoted.

Garg also assured that the bank would not be raising lending rates in the June quarter as it has sufficient liquidity to meet loan growth targets in this quarter.

The bank has booked a 20% rise in net profits in the January - March quarter amounting to Rs. 312 crore.

The net interest margin of the bank has increased to 2.5% as compared to 2.19% last year. The bad loans of the bank have also risen to 0.31% as compared to 0.29% last year.