Thrissur-based South Indian Bank (SIB) has raised equity capital of Rs 442 crore through qualified institutional placement (QIP)to support its business growth plans. Carlyle Ventures Mauritius, a US-based investment group, has picked up 2.04 per cent of stake in the bank, a press release from the bank said. The bank informed that the paid-up capital had increased to Rs 133.5 crore from Rs 113.50 crore.
V A Joseph, managing director and CEO of the bank said through the issue could to have a growth of 20-25 per cent in business during next two years.
The bank had decided to raise the capital through QIP in this June. The Capital Adequacy ratio will increase to 15 per cent from the current 13.76 per cent. RBI requires banks to maintain alteast nine per cent capital adequacy.
Bank will look at raising fresh equity capital in 2014, he said. Besides capital infusion through placement, Bank would be able to plough back profits in excess of Rs 400 crore, improving capital adequacy, Joseph said.
SIB had originally planned to raise the capital by Rs 1000 crore in March, but later lowered to Rs 400-500 crore range.
IFCI has picked a 4.99 per cent for Rs 147 crore while Multiples has bought 5.8 per cent for Rs 165 crore, a press statement said.
State Bank of India picked up 0.34 per cent, SBI Life 0.67 per cent and SBI Mutual Fund has bought 0.85 per cent. Its stock was closed almost flat at Rs 21.50 on Bombay Stock Exchange on Tuesday.