JOIN US"We have got in-principle approval from the government. We are planning to come out with the public offer within next 6 months," Indian Bank Chairman and Managing Director T M Bhasin said.
The fund raise would boost Tier I capital of the bank which stood at 11.02 per cent at the end of March 2011, he said. The capital raised would help fund business growth for next few years, he said.
Under the board resolution, the bank will issue 10 per cent fresh shares in addition to its current equity base of around Rs 430 crore, he said. The government holds 80 per cent equity in the Chennai- headquartered bank.
Besides, the bank plans to raise USD 1 billion (about Rs 4,500 crore) through overseas bonds.
"The bank's board has approved USD 1 billion Medium Term Note programme to raise funds from overseas market during the current fiscal," he said.
Talking about audited results for 2010-11, Bhasin said net profit rose by 7 per cent to Rs 438.86 crore for the fourth quarter ended March 31, 2011, against Rs 409.96 crore in the same quarter of the previous fiscal.
For the whole 2010-11 fiscal, net profit rose by 10.23 per cent to Rs 1,714.07 crore compared to Rs 1,554.98 crore in the previous year. During the year, total income expanded by 16.74 per cent to Rs 10,542.91 crore against Rs 9,030.77 crore in 2009-10.
At the same time, the bank proposed a dividend of Rs 7.50 per share of face value of Rs 10 each, or 75 per cent, for 2010-11. Total business grew by 20.3 per cent to Rs 1,81,530 crore for the period ended March 2011 from Rs 1,50,886 crore for the period ended March 2010.