Mumbai:
Public sector Uco Bank and private lender Kotak Mahindra Bank have come up with
plans to raise funds from the market even as Yes Bank reported a weekend mop-up
of Rs182 crore through private placement of bonds to augment its capital adequacy. Uco
Bank is planning a follow-on public offer of its shares to raise Rs200-250 crore
in 2008 to fund expansion, its chairman SK Goel said. "We also have plans
to raise Rs200 crore in Tier-II debt by end-March," he said. Uco
Bank plans to convert 3 billion of equity shares into preference shares as part
of a capital restructuring exercise, Goel said, adding the bank hopes to get the
approval from the government in a month. "After that, I can go for a follow-on
public issue to raise Rs200-250 crore either in the last quarter of 2007-08 or
the first quarter of 2008-09," he said. The
share sale will lead to dilution of government holding to 55 per cent from the
present 76 per cent, he said. Kotak
Mahindra Bank is planning to issue up to 17 million shares, for which Citigroup
is one of the managers, its chief financial officer Jaimin Bhatt said. Kotak
Mahindra Bank had received approval in July to issue shares in domestic and/or
international markets. Another
private sector lender Yes Bank, meanwhile, said it had already raised Rs182 crore
over the past week through private placement of bonds to augment its capital adequacy. Yes
Bank said in a statement it had placed unsecured, redeemable, non-convertible,
subordinated bonds worth Rs50 crore with an option to retain the oversubscription.
The fund-raising
is part of a plan to raise Rs840 crore in equity and debt. Yes Bank said it would
privately place or sell 20 million shares to qualified institutional buyers to
raise up to Rs50 crore. The rest would be raised in Tier I and Tier II debt, it
said. Indian
banks, including the country''s largest lender State Bank of India, are raising
debt and equity to sustain high loan growth and meet the central bank''s capital
adequacy norms. SBI
plans to sell shares worth Rs10,000 crore around the end of 2007 and Bank of India
also plans to sell shares to raise capital. Number 2 ICICI Bank raised $4.9 billion
this year in the country''s biggest-ever share sale. Indian
banks have also been raising funds to meet robust demand for loans from consumers
and companies.
also see : General
reports on Banks & Financial Institutions Other
reports on UCO Bank Other
reports on Yes Bank Other
reports on Kotak Mahindra Bank
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