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Tuesday, April 7, 2015

IDBI Bank may raise capital in FY16, says CMD Raghavan

IDBI Bank may look to raise further capital this fiscal and is not averse to tapping the market with a follow-on-public offering (FPO), its Chairman & Managing Director M.S. Raghavan has said.

"We definitely need capital. I am not ruling out tapping the market with FPO for this purpose this fiscal", Raghavan told Business Line when asked about capital raising plans for 2015-16.

Raghavan said that he would look to tap the market the day the Bank’s share price equalled its book value.

"Current price-to-book (P/B) of the bank is around 50 per cent. The day my price comes close to the book value that is the day I will go to market"

At the same time, he made it clear that the bank was not in any "dire need" of capital and could manage the current fiscal with existing capital.

The credit growth in the financial year just gone by was muted at about 6 per cent, Raghavan noted.

He was however confident about the prospects for the current fiscal (2015-16) and expects the overall business to grow 12-15 per cent this fiscal.

IDBI Bank has aggressive plans to increase its branch network to 2,000 by end June from the current level of 1,711.

Plans are afoot to add another 750 ATMs this fiscal, taking the overall count of ATMs to 3,750.

Raghavan was in New Delhi for launch of the 3,000th ATM of the bank.

Source : Thehindubusinessline


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