Dena may raise Rs 350 cr in FY09

Dena Bank is likely to raise Rs 300-350 crore capital in the next financial year to maintain a 24 per cent credit growth.Dena Bank’s capital adequacy ratio (CAR) would be a little over 11 per cent at the end of March, including the tier-I capital adequacy ratio of 7 per cent, he said.

The bank is constrained from raising equity capital as the government stake in the bank is at the minimum threshold of around 51 per cent.The bank had posted an extraordinary 176 per cent year-on-year net profit growth in 2006-07 due to a low base.

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ING Vysya Bank to raise Rs 350 cr capital

ING Vysya Bank is planning to raise Rs 350 crore as fresh capital through a qualified institutional placement to fund its growth and augment the capital adequacy ratio (CAR).

The Bangalore-based private sector bank, which is issuing 7.47 million equity shares, will seek shareholders’ approval at an extraordinary general body meeting on November 6.

The board, which met on Saturday, has also approved a preferential allotment of 6.07 million shares to ING Mauritius Holdings and ING Mauritius Investment. ING holds 43.86 per cent stake in ING Vysya Bank.

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Yes Bank raises Rs 1.82 bn in debt

Private sector lender Yes Bank said over the weekend it raised Rs 1.82 billion through private placement of bonds to augment its capital adequacy. The bank said in a statement it had placed unsecured, redeemable, non-convertible, subordinated bonds worth Rs 500 million with an option to retain the oversubscription.

The fund raising is part of a plan to raise Rs 8.4 billion in equity and debt. Yes Bank said it would privately place or sell 20 million shares to qualified institutional buyers to raise up to Rs 5 billion.The rest would be raised in Tier I and Tier II debt, it said.

Indian banks, including the largest lender State Bank of India, are raising debt and equity to sustain high loan growth and meet the central bank's capital adequacy norms.State-run State Bank of India plans to sell shares worth Rs 100 billion around the end of 2007 and Bank of India also plans to sell some stake.

ICICI Bank FPO opens on June 19

The follow-on issue of ICICI Bank opens Tuesday and closes no June 22. The bank plans a domestic float and ADS issue. The price band for the issue will be fixed on Monday.

The domestic issue is for Rs 8,750 crore, with a greenshoe option of Rs 1,312.5 crore. The bank also plans an American depositary share issue of Rs 10,100 crore. Both the ADS and domestic issues will run simultaneously.

Of the total domestic float, 5 per cent will be reserved for existing retail shareholders, and they will get 5 per cent discount to issue price. However, only those shareholders who hold shares less than Rs 1 lakh in value on record date, which was June 13, will be eligible.

The offer constitutes 19.8 per cent of diluted equity, and the ADS component about 9.9 per cent of post-issue capital.The issue is being made to meet the capital adequacy requirements and augment bank's capital to fund future requirements.The bank's CAR is currently at 11.69 per cent. Post-issue it is seen at 15 per cent.