Dena Bank is looking at raising Rs 700 crore as Tier-I and Tier-II capital for meeting the regulatory requirements of 12 per cent capital adequacy ratio (CAR) for which it is in talks with the finance ministry. | |
| Given the bank's growth targets as well as Basel-II requirement, the fund would be required in three years. |
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| The present capital adequacy ratio (CAR) of the bank stands was well above the stipulated 9 per cent level, chairman and managing director M V Nair told reporters at the sidelines of banking conclave organised by Ficci here today. |
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| Nair said to meet the Basel-II norms and achieve 25 per cent growth in assets, the bank would need Rs 450 crore as Tier I capital and the balance as Tier-II. |
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| Since government holding in the bank was 51.19 per cent, there was no scope for tapping the capital market for resources. |
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| "Hence routes such as preference shares and preferential allotments would have to be looked into before which we require clear guideline from the government," he explained. |
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| He also said the bank was planning to raise resources using innovative instruments which were being considered by the finance ministry. |
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