JOIN USAs many as 12 public sector banks have lined up plans for raising funds from markets to shore up their capital base to meet global risk norm, Basel III.
About seven lenders, including Andhra Bank, expect to close their capital raising plan by the end of the current fiscal, sources said. The remaining would raise funds through Follow-on Public Offer (FPO) or Qualified Institutional Placement (QIP) from the market during course of the next fiscal, they added.
Lenders including Allahabad Bank, Andhra Bank, Bank of India, Central Bank of India, Dena Bank, IDBI Bank, Indian Bank and Punjab National Bank have already received permission from the government to raise capital from the market through QIP or FPO or preferential allotment.
Similarly, Syndicate Bank, UCO Bank, United Bank of India, Vijaya Bank also got approval from the government and some of them have already started the process.
As per the Indradhanush roadmap, public sector banks need to raise Rs 1.10 lakh crore from markets, including follow-on public offer, to meet Basel III requirements, which kick in from March 2019.