"We will be raising Rs 400 crore over the next six months to meet the growth capital requirements," the bank's newly-appointed Managing Director and Chief Executive Parthasarathi Mukherjee told PTI here.
The small-sized bank's core capital has depleted to a low 8.7 per cent and since it is planning to expand its loan book by up to 25 per cent, it will need the core capital to keep the adequacy ratio above the mandated levels, he said.
The promoters will also participate in the preferential issue to maintain their holding in the bank at 10 per cent, Mukherjee said.
After this round of infusion, the bank may go for a qualified institutional placement of shares, he said, and added at present, it is concentrating on what is required immediately.
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The private equity funds have generally deployed their money in the newer non-banking lenders, rather than banks, but Mukherjee exuded confidence that it will be able to raise the required funds from PEs.
On acquisitions, he hinted that even if it is approached for a potential takeover, it will opt for growing its business by itself rather than considering such a proposal.
"We are focusing at building our business and have launched a 10-year plan for the same. We have to remain grooved to our plans and objectives," he said.
The bank would like to enter into other businesses such as broking in future, he added.
The bank scrip was trading 0.32 per cent up at Rs 79.55 on the BSE at 1512 hrs, as against a 0.60 per cent jump in the benchmark.