Indian Bank to raise Rs 1,000-cr capital

Indian Bank plans to raise Tier-II capital of about Rs 1,000 crore in order to fund its growth needs during the second half of this fiscal. The bank would take a call on the exact amount to be raised and it may raise the capital through subordinate debt or Upper Tier II instruments to be used by November this year.

The bank is anticipating a loan growth of about Rs 16,000 crore during the current fiscal and for that it will need capital of about Rs 2,000 crore. The bank has already raised Rs 1,000 crore (Rs 500 crore each during the first two quarters of current fiscal) and another Rs 1,000 crore will be raised during the second half of this year. The bank had headroom to raise capital to the tune of about Rs 6,000 crore.