Mumbai: State-run lender IDBI Bank may consider raising funds through a follow-on share in the current financial year to boost its capital base, a senior official told Reuters on Tuesday.
“We are looking at all the possibilities, and, if the timing is right, we may think of raising some equity”, said R.K. Bansal, executive director, without disclosing the size.
“At present, government shareholding is at 65% so we do have some leeway. If at all we raise it, it may be an FPO kind of thing,” he said, adding it could be in the second half of the year.
The firm is also looking to step up recourse to refinance facility provided by financial insitutions such as EXIM Bank, Nabard and SIDBI to save costs, Bansal said.
It will avail Rs 7000-8000 crore refinance in the current financial year compared with Rs 4000-5000 crore a year ago.