Bank of India may raise Rs5-10 bn in FY10

Bank of India may raise Rs5-10 bn in FY10

Mumbai: State-run Bank of India may need to raise about Rs5-10 billion via tier II bonds in rest of 2009-10 to support business growth, a senior official said on Wednesday.

The bank has already raised Rs10 billion via bonds during the year and has a headroom to raise Rs130 billion in the tier II segment, B A Prabhakar, executive director, told Reuters in an interview over telephone.

The fund raising would depend on pricing, loan growth and liquidity available with the bank and there would be no further capital requirement during the year, he said.

The bank is targeting a loan growth of 15-16% with a marginal upward bias, compared with its previous target of 20%, he added.