The bank needs an additional Rs 3,000 crore this fiscal, of which Rs 1,800 crore will come from the Government and the rest will have to be raised via qualified institutional placement route, IDBI Bank Chairman and Managing Director, M.S. Raghavan, at the sidelines of annual banking conference Bancon.
“We want to augment our tier one capital. Rs 3,000 crore is the amount we foresaw, of which Rs 1,800 crore has been allotted by the government. So, Rs 1,200 crore is the rough estimate which will come through QIP,” said Raghavan.
The bank has been allotted Rs 1,800 crore in support from the government, as part of the Centre’s Rs 14,000-crore capital infusion programme for banks during this fiscal.
On raising tier-II capital, Raghavan said it was very comfortable in that front and will not be doing any debt raising for the next two years. He also said his main objective is to improve the banks lending to the priority sector.
“We have been in the commercial banking space only for the last 10 years. So in our priority sector lending, we are substantially less and are yet to catch up to the RBI norms,” said Raghavan.