Capital-hungry banks seek MF backing for $3-bn QIPs

PSBs approach MFs asking them to mandatorily participate in the fundraising, sources said

Public sector banks (PSBs) are seeking the backing of mutual funds (MFs) to ensure smooth sailing of their qualified institutional placements (QIPs). Over half a dozen sate-owned banks will soon tap the market for equity fundraising worth Rs 18,300 crore (nearly $3 billion).

Approaching institutional investors ahead of a fundraising programme, ‘roadshow’ in market parlance, is a common practice. However, some banks are said to have asked MFs to mandatorily participate in the programme.

“We have been approached by four PSBs asking to invest in their QIPs. Some bank officials even said if we don’t invest, they would redeem existing