Bangalore: Canara Bank, the highest profit-making bank in the country, is coming out with its maiden public offer in the second week of September with the initial public offer (IPO) size likely to be around Rs 110 crore, its chairman and managing director, R V Shastri, said.

"The public issue size is likely to be Rs 110 crore. We will come out with the issue in the second week of September", Shastri told reporters after the bank launched its "Anywhere Banking" (AWB) facility.

He said the bank would decide on the premium in two months but added that it would be "reasonable".

Shastri said it would be a public issue and not book-building route.

Bank officials noted that the bank initiated its maiden public issue exercise five years ago but did not come out with one owing to fluctuating market conditions.

Shastri said the bank has sought to return to the government Rs 277 crore of its total Rs 578 crore in the bank. Post-IPO, the government holding in the bank would come down by 27 per cent, he added.

The bank, which clocked a net profit of RS 741 crore for 2001-02, is planning to launch mobile banking in five cities in September, Internet banking in December and debit card in the current financial year.

Shastri said the bank, which recorded total business of Rs 97,157 crore during 2001- 02, is targeting Rs 1,12,000 crore in the current financial year. Its ATM strength is presently 118, which it planned to take to 250 by March next year.

Meanwhile, the bank launched its AWB facility by networking 180 branches in Bangalore, Mumbai, Chennai, Delhi and Kolkata. The facility covers both intracity and intercity transactions.

Shastri said another 80 branches in these cities would be hooked to the network during the current financial year. It also plans to extend the AWB facility to Agra, Ahmedabad, Hyderabad, Mangalore, Mysore, Pune and Thiruvananthapuram covering 110 branches.

By March next year, 370 branches would be brought under the AWB network, he added.

According to the bank, features of AWB include transactions such as cash withdrawal and remittance, transfer of funds, balance enquiry, issue of mini-statements and deposit of local cheques.

PTI