The Hindu Business Line : IndusInd Bank plans to hike capital by Rs 130-150 crore

INDUSIND Bank said it plans to increase its capital base by Rs 130-150 crore either through a Tier II bond issue or an equity issue. Its equity capital was Rs 290.42 crore as on September 30, 2004.

The bank plans to raise this additional capital in the initial months of the next calendar year to maintain its capital adequacy ratio above 11 per cent, Mr Bhaskar Ghose, Managing Director, IndusInd Bank, told reporters at the unveiling of the bank's new logo. Currently, its capital adequacy ratio stands at 13.17 per cent.

Mr Ghose said that IndusInd would explore strategic partnerships with overseas banking entities mainly to gain access to new markets. These might not necessarily take the form of an equity holding in the bank, he said. The bank is looking at partnerships with several entities to provide services to its customers in wealth management, private banking and capital markets. These tie-ups will be targeted as separate companies, and not as part of the main bank. The bank would look at expanding its presence overseas in the United Arab Emirates, the UK and South East Asia, not through representative offices or branches, but a different business model, said Mr Ghose. The bank currently has representative offices in Dubai and London.

More branches: IndusInd Bank is also planning to increase the number of its branches to 130 by the end of the financial year 2004-05, by converting erstwhile Ashok Leyland Finance offices into its branches.