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Kerala-based South Indian Bank is looking to raise up to ₹500 crore through qualified institutional placements (QIP).
According to Amitabha Guha, Non-Executive Chairman of the bank, the QIP will be planned “at the right time” and “at the right price”.
“We intend to raise between ₹400 crore and ₹500 crore from the proposed QIP,” he told newspersons on the sidelines of the CII-organised Banking Colloquium.
South Indian Bank has already obtained the approval from its board for the proposed QIP, which will mostly be for meeting its capital requirement. The bank’s capital adequacy stands at 12.23 per cent (as on March 31, 2014).
According to Guha, the bank is targeting a net interest margin (NIM) of around 3 per cent; it was around 3.13 per cent last fiscal.
“Ideally, we want NIM to be around 3 per cent levels. Credit growth has slowed down, which might lead to a slowdown in NIM,” he added.
The bank, he said, is looking to add around 50 branches this fiscal to its 835 branches.
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