Nainital Bank raises Rs 30 cr

The Nainital Bank has raised Rs 30 crore through a right issue to expand its capital adequacy ratio (CAR) to 14 per cent. After putting off plans for an IPO due to adverse market conditions last year, the Nainital Bank chose the path of right issue which hit the market last September. “The issue was highly successful and oversubscribed and we raised Rs 30 crore,” said chairman and CEO of the bank Animesh Chauhan. the bank has a net business of Rs 3,600 crore.

“We are now using this money for credit expansion,” said Chauhan after the inauguration of the 100th branch of the bank in Dehradun. The CBS branch was inaugurated by state labour and parliamentary affairs minister Prakash Pant. The bank, which was established in 1912 and having presence in five states like Delhi, UP, Uttarakhand, Haryana and Rajasthan, would be opening three more branches before July this year. One more branch is coming up at the hill resort of Mussoorie. The bank is owned by the Bank of Baroda which is having 98 per cent stakes in it.