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Bharat
Overseas Bank to come out with IPO soon
Hyderabad: Chennai-based private sector bank, the
Bharat Overseas Bank Ltd, plans to come out with an initial
public offer soon.
Its
chairman and CEO, G. Krishna Murthy, said the public offer
would enhance the net worth of the bank well above the
stipulated level of Rs300 crore.
Murthy
said the bank had set a target of achieving Rs12,000 crore
business by March 2010 from the current level of Rs4,500
crore. The bank had also chalked out strategy to expand
its delivery channels by taking its total branches to
200, he said.
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Union
Bank Tier-II bond issue oversubscribed
Mumbai:
The Union Bank of India's Rs400-crore Tier-II capital
bond issue has been oversubscribed to the extent of Rs1,301
crore, the bank has informed the Bombay Stock Exchange.
The
subordinated debt bonds issue, with a greenshoe option
of Rs400 crore, opened on September 14 and closed on September
15.
Of
the bids received, Rs896 crore were under the fixed rate
option and Rs405 crore under floating rate. The bank retained
Rs600 crore at a cut-off yield of 7.45 per cent per annum
under fixed rate and Rs200 crore at a cut-off yield of
55 basis points over one-year G-Sec under floating rate.
The
bank is raising funds to maintain its capital adequacy
ratio (CAR) at 12 per cent, said a senior official of
the bank. According to officials the bank is expecting
advances of around Rs50,000 crore, by the end of this
fiscal, and needs additional capital to maintain its CAR.
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Bank
of India MTNs to raise US$350mn
Bangalore: The Bank of India is readying itself
to tap the foreign currency bond market for the equivalent
of US$350mn, through an issuance of medium term notes
(MTNs).
Bank
officials have said that this issuance, which would be
the first tranche, would be completed this year itself.
Earlier this year the bank had announced that it intended
to raise at least US$1bn through MTNs. Officials have
said that the pricing for the five-year note was yet to
be finalised by the lead arrangers.
The
lead arrangers for the loan are Deutshe Bank, HSBC and
Barclays Capital.
Funds
raised through the MTN issue, officials said, would be
used for expanding its overseas credit operations. As
part of this expansion, BoI would also be looking at opening
more international branches. The bank currently has 20
branches and three representative offices.
Officials
said that the bank intended to open an office in Beijing.
In addition, it is also looking at upgrading its representative
office in Shenzen in China into a full-fledged branch.
The representative office in Ho Chi Minh city would also
be upgraded into a full-fledged branch.
BoI
has also obtained permission from the Reserve Bank of
India for opening a branch in Antwerp, Belgium, and a
wholly owned subsidiary in Tanzania.
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