Indian Bank’s FPO to hit capital market next year

Public sector lender, Indian Bank’s follow-on-public offer (FPO) is likely to hit the capital market in next year. The bank had planned to sell 61.4 million shares post receiving approval from government in May 2011.

The said FPO was expected to open in October 2011, however, was deferred by bank amid volatile market conditions.  Indian Bank, presently operating with sufficient capital, may require additional funds post FY12. The capital adequacy ratio was at 12.23% as at end of September 2011.

The bank as part of expanding its services has planned to open 2,000 branches by March 31, 2012. Currently, it has about 1900 branches and 1,200 ATMs across India.

Indian bank’s net profit for the second quarter has increased marginally by 12.73% at Rs 468.69 crore as compared to Rs 415.77 crore for the corresponding quarter of the last year. The bank’s total income has surged 31.96% at Rs 3377.13 crore for the quarter under review as compared to Rs 2559.28 crore for the second quarter of the previous year.