IDBI Bank to raise funds via rights issue, follow-on offer

IDBI Bank is planning to raise capital through a mix of rights issue and a follow-on public offer in the next fiscal, reports Vyas Mohan.

IDBI Bank is planning to raise capital through a mix of rights issue and a follow-on public offer in the next fiscal.

HT Image

The bank would raise funds for expansion purposes and also to meet stricter capital adequacy norms that accompany Basel II requirements.

“We will raise the capital part rights issue, part follow-on public offer. The current capital adequacy ration of the bank is comfortable at 14 per cent,” IDBI Chairman and Managing Director Yogesh Aggarwal told reporters on the sidelines of a press meet here on Tuesday.Aggarwal said that post-issue, the Government of India’s current share of 52.68 per cent in the bank would not dip below the 51 per cent mark.

Declining to comment on the size of timing of the issue, Aggarwal said the bank has already submitted its capital-raising plan to the government and is awaiting a response. He said the bank would soon open its branches in Shanghai, Dubai and Singapore, focussing on to catering to its corporate clients.