ING Vysya Bank to raise Rs 350 cr capital

ING Vysya Bank is planning to raise Rs 350 crore as fresh capital through a qualified institutional placement to fund its growth and augment the capital adequacy ratio (CAR).

The Bangalore-based private sector bank, which is issuing 7.47 million equity shares, will seek shareholders' approval at an extraordinary general body meeting on November 6.

The board, which met on Saturday, has also approved a preferential allotment of 6.07 million shares to ING Mauritius Holdings and ING Mauritius Investment. ING holds 43.86 per cent stake in ING Vysya Bank.

The pricing of the shares would be announced at the time of the launch of the issue, a bank official told Business Standard.

He said, "The money was being raised to fund growth plans. Our capital adequacy ratio was 10.7 per cent as of June 30, 2007 and to take it to a comfortable level we need fresh capital. The CAR level for the fiscal was pegged above 11 per cent."

In the June 2007 quarter, the bank's net profit rose 71.19 per cent to Rs 25.32 crore over the corresponding period last year. Total income rose 38.47 per cent to Rs 486.38 crore.

Meanwhile, ING Vysya Life, a part of the ING Group, on Monday announced a capital infusion of Rs 25 crore, which increases its paid-up capital to Rs 790 crore.

To support its business expansion, the promoters would infuse Rs 550 crore in the near future, which would eventually raise the total paid-up capital to Rs 1,340 crore, a company press release said.

Established in 2001, ING Vysya Life has a pan-India presence. The company has 21 life insurance products, including eight unit-linked products, which are available through its diversified distribution platform.

The company recently launched ING Positive Life, a unit-linked saving solution.