IFC's stake will go up to 7.3% post infusion: Federal Bank's Srinivasan

"We have seen reasonably good growth and the outlook for growth remains quite constructive and positive. Now we must raise capital for funding the next wave of growth," said Shyam Srinivasan

Federal Bank has raised Rs 3,040 crore via a QIP issue this week and is awaiting regulatory approval to get another Rs 1,000 crore capital from International Finance Corporation. Shyam Srinivasan, MD & CEO of the bank, says the funds are to support organic growth, in a telephonic interview to Manojit Saha. Edited excerpts:

What is the reason for raising equity capital?

Shareholders have given us approval to raise up to Rs 4,000 crore as equity capital. We have had this approval for two years now. We had our internal triggers on raising capital and when our Common Equity Tier-1