Kerala-based South Indian Bank (SIB) today said its recent initiative of Capital raising to support the business growth has been a great success. “The Rights issue of shares for a total amount of Rs 630. 99 crore was subscribed 1.84 times,” the Bank said in a release here.
V G Mathew, MD & CEO of the Bank stated that the recent capital raising, together with expected retention of internal capital generation, can support targeted business growth of 20 per cent per annum with a comfortable CRAR (capital-to-risk weighted assets ratio) position for two years.
The Bank said it had a CRAR of 11.05 per cent as at the end of Q3 and the fresh capital raised will push up the CRAR by about 160 BPS.
“The shares issued under rights were allowed for trading on both BSE and NSE wef March 31, 2017,” it said.
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Mathew said the Bank was grateful to the investors for the support and confidence shown in various initiatives taken by the management to take the Bank to new heights.
The overwhelming response to the capital raising initiative is a reflection of investor confidence, he added.