IDBI Bank may expand equity base in 2012-13

KOLKATA: Public sector lender IDBI Bank may go for equity base expansion in the next financial year, a top bank official said on Monday.

"Currently, our capital adequacy is 13.6 per cent and for growth of the targeted 15-16 per cent during the current fiscal, we are well capitalised, but we may require to do so in the FY 2013," IDBI Chairman and Managing Director R M Malla said here.

"We will follow whichever route is cheaper and suitable," he said.

The bank will weigh options from follow-on public offer (FPO), rights issue or qualified institutional placement.

Malla did not give any indication on the amount the bank aimed to raise through the capital expansion route.

The government now has 65 per cent stake in the bank after it infused Rs 3,000 crore.

The bank had recently raised Tier-II capital issue of Rs 900 crore and would raise another USD 1 billion in the next one year in foreign curreny through the medium-term note programme.

The bank was also looking at USD 300-350 million for the SME sector with partial guarantee from the Asian Development Bank.

Source: EconomicTimes