IDBI Bank plans infrastructure debt fund

IDBI Bank is planning to float an infrastructure debt fund soon for funding projects in the country.

“We have plans to float an infrastructure debt fund and are awaiting RBI’s guidelines for the same,” said R K Bansal, Executive Director, IDBI Bank, here on Monday. The government had come up with a framework for floating and regulating infrastructure debt funds in June this year .

This apart, the bank is also mulling an increase in equity base next financial year. The bank will weigh options such as a follow-on public offer (FPO), rights issue or qualified institutional placement for its fund raising plan.

 

"We are well capitalised at 13.6 per cent to achieve a targeted growth rate of 15-16 per cent during the current fiscal. We may, however, look to raise capital in the FY 2013," said R M Malla, Chairman and Managing Director, IDBI Bank, on the sidelines of a press meet to announce the launch of the bank’s ‘Magic Card’ which is a debit-cum-credit card.

"We will follow whichever route is cheaper and suitable," he said without divulging details on the amount likely to be raised.

The bank had recently raised Tier-II capital of Rs 900 crore and plans to raise another $ 1 billion in the next one year through the medium-term note programme.

IDBI Bank is also planning to double its exposure to the microfinance sector over the next one year.

“Our exposure to MFIs was less than Rs 800 crore last year and with the RBI now coming out with clear guidelines for the sector we are hopeful of doubling our exposure to Rs 1,600 crore over the next one year,” Malla said.

IDBI Bank has, however, trimmed its exposure to film financing due to a significant rise in defaults, said Bansal.

The total outstanding in the bank’s film loan portfolio stands at Rs 200 crore and it has non-performing assets to the tune of Rs 80 crore.