Indian Bank enters capital market

Chennai, Jan 20: Public sector Indian Bank, which is celebrating its 100 years of operations, today announced its entry into the capital market to augment its capital base to meet future capital requirements.

Addressing a press conference here, K C Chakrabarty, Chairman and Managing Director said the bank was tapping the market to meet capital requirements, arising out of implementation of Basel II standards and also to grow its assets, primarily loans and investment portfolio.

Mr Chakrabarty said the bank has decided to tap the market with an initial public offer of 85,950,000 equity shares of Rs 10 each for cash at a premium to be decided through 100 per cent book-building process.

The price band for the bids for the IPO, which opens for subscription on February five and closes on Februray nine, has been fixed between Rs 77 and Rs 91 per share, he said.

The CMD said the offer constituted 20 per cent of the post issue fully diluted paid up equity capital of the bank and post IPO, the Union government would hold 80 per cent of the bank's equity share capital.

Mr Chakrabarty said that the bank was committed to provide a range of financial products and services to all our customers under one roof.

While providing the financial products and services to the retail and corporate customers, the bank maintained its focus on addressing the needs of agricultural customers and offer specialised products and services that cater to the agricultural and rural sectors, he added.

UNI