Syndicate Bank seeks government nod for QIP

The bank is seeking permission to raise Rs 1,100 crore through the QIP route

State-run Syndicate Bank has sought the government's approval to raise Rs 1,100 crore from the market through Qualified Institutional Placement (QIP) route.

"We have written to the government seeking permission to raise Rs 1,100 crore through the QIP route," said Sudhir Kumar Jain, Chairman and Managing Director, Syndicate Bank.

If the bank failed to obtain the permission, then it would go for dilution of stake from 67.3% to 62%, he told reporters on the sidelines of Ficci Banking Conclave here today.

Jain said the bank was on a sound footing in terms of capital adequacy.

"The bank has drawn up vision 2020 which envisages a yearly credit growth of 19%", he said.

Going by that, there would be a need to raise capital to meet future requirements, he added.

This fiscal, the bank has targetted a credit growth of 19% and deposits growth of 17%.

On the asset quality front, Jain said the gross NPA as on March 31, 2014, was 2.61% and some fresh slippages had accrued since then.

In the first quarter of the current fiscal, the bank sold NPAs worth Rs 200 crore to asset reconstruction companies.