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Our Bureau

Mr M.B.N.Rao

Bangalore , Sept. 15

INDIAN Bank, after having effected a complete turnaround, is now on the prowl for an acquisition to give it better presence in the North.

The Chairman and Managing Director, Mr M.B.N. Rao, said: "We are on the lookout for an acquisition and hope to finalise it before the end of this year." However, he refused to specify whether the target was a public sector bank or a private one.

Indian Bank also intends to tap the markets with an IPO before finalising the takeover, he added.

The amount for the IPO and pricing are being worked out. Mr Rao said that the IPO was being planned to increase its risk-weighted business. The bank is tapping the equity market despite the fact that it already has a capital adequacy of close to 15 per cent.

Consequently, speculations were rife that the IPO was intended more for price discovery than capital requirements.

Mr Rao said that this year the bank had managed to show highly credible performance. "The rise in yields of Government securities during the last three months would not dent the profit targets for the second quarter."

In the first quarter, the bank had reported a net profit of Rs 118 crore. It has reduced its gross NPAs by Rs 438 crore.

More Stories on : Mergers & Acquisitions | Public Sector Banks

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