Indian Bank may raise capital next fiscal

Indian Bank may raise capital next fiscal

Indian Bank may come out with a follow-on public offer (FPO) next fiscal if market conditions improve, a top official said.

“We do not require capital immediately...we may go in for FPO in the next fiscal (2013-14),” the state-owned bank’s Chairman and Managing Director T M Bhasin said.
The board has already given approval for equity dilution to the extent of 10 per cent, he said. At present, the government holds 80 per cent stake in the Chennai-headquartered bank.

Bhasin said the bank’s total capital adequacy stands at 12.98 per cent. Of this, Tier-I is about 10.72 per cent at the end of June, 2012.
The bank is adequately capitalised to meet credit growth of 18 per cent for the current fiscal, he said.

Talking about overseas expansion plan, Bhasin said the bank plans to open a branch in Hong Kong. The bank has already sought regulatory permissions for opening its office in Hong Kong.

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