‘IndusInd Bank to raise Rs1,000 crore’

‘IndusInd Bank to raise Rs1,000 crore’

Mumbai: Private-sector lender IndusInd Bank plans to raise up to Rs1,000 crore by December, a top official said on Friday.

The equity dilution could be anywhere up to 8-10%, managing director and CEO Romesh Sobti told reporters.

He did not specify the mode of fund raising but said it will be through any of the equity-linked instruments such as qualified institutional placement, preferential allotment or global depository receipts.

“Expansion of branches, launching of new products and hiring new people, these are the broad areas of investment," Sobti said, adding he expects the fund-raising to happen in the next 3-4 months.

Sobti said the bank has obtained licences to open 127 new branches in FY11. The bank opened 14 branches this quarter, taking its total tally to 224 branches.

The bank will also launch a credit card business as well as currency futures broking services for clients this fiscal, he said.

The bank posted a net profit of Rs1,180 crore in the quarter ended June from Rs86.5 crore a year earlier, while net interest income grew to Rs295 crore from Rs167 crore a year ago.

Net interest margins for the quarter expanded to 3.32% compared to 2.45% while core fee income grew to Rs129 crore from Rs86.53 crore.

The bank’s net NPA fell to Rs82.49 crore against Rs166 crore in the same quarter last year.

Sobti said he sees credit growth between 25-30% in FY11 for the bank.

Shares of the bank ended down 1.58% at Rs215.2 in a firm Mumbai market.