Indusind Bank plans to raise 4-5 billion rupees via tier-2 capital

Indusind Bank plans to raise 4-5 billion rupees
Private sector IndusInd Bank said on Friday that, it plans to raise funds worth Rs 4-5 billion through the issue of bonds to be part of its Tier 2 capital. The issue will strengthen the bank's capital base and would be undertaken by the bank between end September and beginning of October, this year.

In a bid to boost the decline in capital adequacy ratios, many mid sized and small private banks are planning to raise funds from institutional investors and private equity players'. The funds raised also help them in financing future growth. South Indian bank would Rs 1,000 crore over the next couple of months through qualified institutional placements. Catholic Syrian Bank is mulling to raise about Rs 350 crore in the current financial year.

City Union Bank and Yes Bank are also eyeing opportunities in India and overseas to raise funds. The Basel III guidelines, which are the new capital adequacy norms, require higher capital requirements for banks. The current capital adequacy ratio to be maintained by banks according to the RBI regulation is 9%.

The net profit of IndusInd Bank witnessed a 52 percent for April -June period in 2011-12 at Rs 180.18 crore compared to Rs 118.55 crore last fiscal. Its capital adequacy ratio as on June 30, 2011 increased to 14.99 percent against 13.71percent during the year-ago period.

Read more about: indusind bank, bank, bse
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