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Last Updated : Jun 27, 2011 06:41 PM IST | Source: CNBC-TV18

QIP not sole route to raise funds: City Union Bank

S Balasubramanian, Chairman of City Union Bank says that he is expecting a credit growth Rs 3000 crore in the current year. To fund the credit growth, the bank will require addition Rs 300 crore, which may be raised through a QIP.


S Balasubramanian, Chairman of City Union Bank says that he is expecting a credit growth Rs 3000 crore in the current year. To fund the credit growth, the bank will require addition Rs 300 crore, which may be raised through a QIP.


"If at all we will go for QIP, we will not go for too much dilution and we will also keep the other options because we have not come for right issue."


In an interview with CNBC-TV 18, he says that the bank is not looking to dilute more than 7-8% while raising capital.


Below is a verbatim transcript of his interview with Reema Tendulkar and Ekta Batra. Also watch the accompanying video.


Q: We wanted to understand this Rs 300 crore via QIP which you are looking to list, how much will that help you all to incrementally lend in this fiscal year and also what would happen to the capital adequacy ratio once this money comes in?


A: At present our capital adequacy ratio is comfortable at 12.45. In fact, last year the credit growth was about 35% and we expect this year the credit will grow by Rs 3000 crore, which may probably require additional capital of Rs 300 crore. But we are not closing other options. We are also keeping other options like write issues and other things. This is only enabling resolution. Even in the last AGM, we went in for the resolution; we have kept the resolution valid for one year.

We are keeping the resolution open and we are waiting for an opportunity, probably two things we are waiting for

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First Published on Jun 27, 2011 02:37 pm
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