Investment banks have had a meeting with IDBI Bank this week in Mumbai to plan out institutional share sale and offering of preferential shares to big investor who may also take over the management of the bank.
This fund raising is expected to help the Bank strengthen its balance sheet and strap out the bad debits that forms around 7.50 percent of loans at the end of June this year. The capital adequacy of the bank stood at 11.80 per cent as compared to 13.2 percent of the country’s banking system as on March end as per an RBI report. The bank has also called for bids for capital raising.
The bank had earlier appointed advisors for an institutional share sale to the tune of Rs. 3,770 crore and had even reached the investors which included World Bank’s International Finance Corporation. The July month of this year, saw Rs. 8,000 crore of fundraising through rights issue, preferential shares and/or institutional share placements.
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