Investors likely to be tight-fisted as private banks look to raise capital

As a clutch of private banks set out to raise capital, the quality of assets and governance will hold the key more than ever before as to how the sector is seen from hereon

Last week, Murli Natrajan was in Geneva to meet Aga Khan, founder-chairman of the Aga Khan Development Network, to brief him on DCB Bank’s plans. “We are comfortable on the capital front as on date, but a year down the line, equity capital will have to be raised,” says the managing director (MD) and chief executive officer (CEO) of the bank. The Aga Khan Fund for Economic Development holds 15 per cent stake in the bank, but however blue-blooded your promoter-lineage is, investors will be much more tight-fisted in handing over money to private banks, going ahead.

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