Indian Bank likely to tap capital market next fiscal

Written by Press Trust of India | New Delhi | Updated: Feb 28 2012, 09:01am hrs
State-owned Indian Bank on Monday said it may come out with a follow-on public offer (FPO) next fiscal if market conditions are conducive.

We do not require capital immediately...we may go for an FPO in the next fiscal (2012-13) if the market conditions improve, said Indian Bank chairman and managing director TM Bhasin.

The board has already given approval for the equity dilution to the extent of 10%, he said. At present, the government holds an 80% stake in the Chennai-headquartered bank. Bhasin said the bank's total capital adequacy stands at 13.56%. Of this, Tier-I is about 11.2%. Besides, there is a R6,300-crore headroom for Tier-II capital. Therefore, the bank has not made any capital request to the government for the current fiscal, he said.

Talking about overseas expansion plan, Bhasin said the bank plans to open a branch in Hong Kong and a representative office in Jakarta.