Bank of Rajasthan to raise Rs 250cr through QIP by June

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Bank of Rajasthan is looking to raise Rs 250 crore through a qualified institutional placement in the coming months.

In an extraordinary general meeting, the shareholders of the bank have given the nod to complete the QIP in the next three months. The management says the bank has already received the Reserve Bank's approval to go ahead with the QIP.

The board's decision to go for the QIP is important because it will dilute the promoter's stake. Currently, promoter and dominant shareholder the Tayals have come under the regulator's scrutiny for allegedly increasing their stake through front companies.

G Padmanabhan, MD and CEO, Bank of Rajasthan, says, "A whole lot of instruments have been made available for capital raising. We thank the shareholders for the trust and confidence they have in the bank. At the same time, you have raised an important issue on what are the views of the regulator. The approval we have from RBI for capital raising is only through QIP route."