While this increase in the cost of equity may initially be compensated by the substitution of equity with debt funding, the scope for such substitution is limited by regulatory requirements and banks’ own motives to establish adequate capital buffers.
It remains one of the domestically controlled flagship banks with strong performance in asset growth and profitability. Starting off as a merchant bank in the 1990’s and transitioning to a universal bank in 2004, Calbank has exhibited strong growth over the years with an increasing number of branches and several ATMs across the country. 4.