Banks on an expansion binge

To raise Rs 6,350 crore equity

Government Holding (%)

Public sector banks Punjab National Bank130080.00 Bank of India10069.47 Dena Bank

80-100

70.99 Allahabad Bank

75-100

71.16 Syndicate Bank6073.52 Andhra Bank14062.50 Central Bank of India400- Indian Bank300- IDFC1000- United Bank of India50- Bank of Baroda150066.83 Private sector banks HDFC Bank900- UTI Bank500- Yes Bank200- Total6350-

   Source: Industry

 In addition to PSU banks raising funds largely through domestic issuances, private sector banks like HDFC Bank, UTI Bank and Yes Bank have also drawn up plans to tap the market.  Both HDFC Bank and UTI Bank propose to tap the overseas market with a $200 million American depository receipts (ADR) issue and Rs 500 crore global depository receipts (GDRs) respectively, said banking sources.  With interest rates seen firming up, banks have shown preference to raise funds through the equity route over debt.  As assets are seen to be growing at the rate of 25-30 per cent, HDFC Bank will need to raise capital over the next six to 12 months to support this growth and maintain the capital adequacy ratio (CAR), said Paresh Sukthankar, head credit and market risk, HDFC Bank. The bank