City Union Bank QIP subscribed 3 times

City Union Bank’s qualified institutional placement (QIP) issue has reportedly been subscribed threefold. The bank aimed to raise around Rs 350 crore by diluting seven per cent stake.

The fund raising is to support its business plan and address its capital requirements. Market sources said Edelweiss was lead manager for the issue. Other managers included Axis Capital, Kotak, Spark Capital and Ambit Capital.

The issue was opened on Monday evening. Sources said the bank has received around Rs 1,200 crore. They said this should suffice for supporting growth in the next three years.

The tier-I capital is around 14.5 per cent. As of end-March, the Basel-II capital adequacy ratio was 15.11 per cent as compared to 13.98 per cent year before. The lender reported a marginal increase in net profit to Rs 83.3 crore in the March quarter, compared to Rs 82.5 crore a year before. The total income rose to Rs 726 crore from Rs 678 crore a year before, a rise of seven per cent.