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| IDBI Bank plans Rs 1,500-cr capital infusion by FY11-end |
| Press Trust of India / Mumbai Sep 07, 2010, 21:09 IST |
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IDBI Bank today said it plans to raise capital of Rs 1,500 crore by the end of the current fiscal to fuel its expansion.
"We will be raising Rs 1,500 crore in upper tier-II capital before March 2011," IDBI Bank CMD R M Malla said on the sidelines of a Ficci-IBA banking conference here.
The capital-raising would be done either in a single tranche or two batches, he added.
By end-FY11, the public lender is targeting a 20 per cent increase in deposits and taking the cheaper current and savings account (CASA) component to 20 per cent from the current lower-than-peers' 14 per cent, Malla said.
The bank will be concentrating heavily on the fast growing home loan segment and it already has an outstanding portfolio of Rs 18,000 crore, Malla said.
Besides, another Rs 4,000 crore will be added once the merger of its subsidiary IDBI Home Finance was completed. He said. The merger will be completed by the end of the current fiscal.
Malla said that after a year, the bank could go in for divestment and will decide whether to go in for a rights issue, Qualified Institutional Placement (QIP) or follow-on public offer.
The government owns 65 per cent in the bank which is among its highest holding in public sector banks, he said.
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