City Union Bank to raise Rs 2,000 crore by 2015 | india | Hindustan Times
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City Union Bank to raise Rs 2,000 crore by 2015

india Updated: Nov 16, 2010 10:51 IST
City Union Bank

Private lender City Union Bank plans to raise about Rs 2,000 crore from the capital market by 2015, either through the QIP route or a rights issue, Executive Director N Kamakoti said late last night.

"We want to raise funds to about Rs 2,000 crore by 2015... We have already got shareholders' approval for raising Rs 300 crore... Remaining, we will take a call in fourth quarter of this financial year...," Kamakoti told reporters here.

He said the company's board would take a call later on the mode employed for raising the funds -- either qualified institutional placement (QIP) or a rights issue. Stating that bank has witnessed modest growth in the past few years, he said City Union Bank plans to enhance its branch network from 230 offices at present to 300 by April-June, 2011.

"We got licences for opening some of the branches," he said, adding about 160 branches will be based in Tamil Nadu, while 35-40 branches will be set up in Kerala.

The bank will shortly enter into a MoU with Geojit Financial Services for offering online trading services. "We will sign the MoU with Geojit Financial Services in a few weeks' time," he said.

Kamakoti was here to announce the second quarter results of the bank. The Kumbakonam-based bank reported a net profit of Rs 61.58 crore for the second quarter ending September 30, 2010, up 35 per cent from Rs 45.75 crore in the same period last fiscal.