ING Vysya Bank may raise Rs 700 cr

The bank has sought approval from its shareholders through a postal ballot to raise funds through a private placement

ING Vysya Bank has proposed to raise up to Rs 700 crore on private placement basis by way of issue of securities including but not limited to bonds and non-convertible debentures. The funds raised will enable the bank to augment its capital under Basel-III requirements and meet its growth plans.

The capital could be raised either or both in Indian rupees or equivalent of foreign currency, the bank had said in a filing to the BSE recently.

The bank has also proposed to increase the borrowing limit to Rs 20,000 crore including the already borrowed funds. The bank has sought approval from its shareholders through the postal ballot.

ING Vysya Bank, for the first quarter ended June 30, 2014, reported 18.1 per cent decline in net profit at Rs 143.4 crore compared to Rs 175.1 crore in the corresponding quarter last year. The total income for the quarter marginally went up by 3.1 per cent to Rs 690.7 crore from Rs 669.9 crore in the same quarter last year.

Capital adequacy ratio improved to 15.19 per cent (according to Basel-III) from 12.59 per cent a year ago.

The bank’s stock closed 0.60 per cent higher at Rs 614.80 per share on the close of trading on the BSE on Monday.