Syndicate Bank goes slow on fund raise plans

Bank has already received board approval to raise Rs 1,500 cr either through QIP or rights issue

Syndicate Bank has said it will go slow on additional capital raising plans as current market conditions are not conducive to a fund raise.

The bank has already got the approval of the Board to raise Rs 1,500 crore through qualified institutional placement (QIP) or through a rights issue to fund its expansion plans, according to executive director, M Anjaneya Prasad. “Though the due diligence for this is complete, we are going slow,” Prasad said on Wednesday.

Recently, the finance ministry said it has decided to infuse capital of about Rs 200 crore into Syndicate bank in the current financial year.

Responding to a question, Prasad said the bank was looking at a credit growth of 18 per cent this year, mostly fueled by expansion of retail and micro small and medium enterprises (MSMEs).  The Manipal-headquartered bank reported a flat growth in net profit at Rs 470 crore for the quarter, ended September, 2013.

Meanwhile, the bank has introduced the concept of field general managers (FGM) with eight offices across the country.

These offices will become operational from November 1 and will be headed by these general managers to ensure quicker decisions on development and recovery activities.