BoR to cut down on promoters' holding

This will allow the bank to raise Rs 250 crore, as planned, in order to realise its growth plans and conform to Basel II norms.

"We are working sincerely to meet the RBI requirements, under which the promoters cannot hold more than 10 per cent of the holdings. We are planning to raise about Rs 250 crore through preferential allotment, which could bring down the promoter's stake in the bank from 37 per cent to about 10 per cent in a year's time," said PL Ahuja, chairman and chief executive officer, Bank of Rajasthan.

Promoted by Praveen Kumar Tayal, Bank of Rajasthan has been reducing the private stake in a phased manner. Since December last, Tayal's stake was lowered from 44 per cent to 37 per cent.

BoR is aiming for a total business of around Rs 26,000 crore in FY09 compared to Rs 21,000 crore in the last financial year.

"We would like to grow by more than 20 per cent, both in terms of deposits and advances, in the current financial year," he told Business Standard.

Meanwhile, the bank is planning to raise the deposit rate by 25 to 50 basis points in a week's time. These rates stand at 9.5 per cent, as of now.

"We will take a call on the deposit rates in a week's time and probably increase them by another 25 to 50 basis points," he added.

The bank has 464 branches and plans to open 40 new branches in this financial year, subject to approvals by the RBI.