The Hindu Business Line : South Indian Bank seeks RBI nod to raise capital

THE South Indian Bank has written to the Reserve Bank of India seeking permission to raise its authorised capital from Rs 100 crore to Rs 200 crore, the bank's Executive Director, Dr V.A. Joseph, told Business Line today.

Currently, the bank's paid-up capital is Rs 48 crore.

Dr Joseph said that the bank was looking to enhancing the capital base next year "so as to fall in line with capital adequacy requirements of the Basel-II accord," but did not wish to amplify on the method of raising capital, pending RBI's approval. He said that the bank aimed to attain a networth of Rs 1,000 crore by 2006-07.

It is expected that the bank may come out with a public issue after RBI's approval is received.

The bank has announced it would open five more branches in the current quarter — in Amritsar, Noida, Delhi, Nagpur and Raipur, taking the total number of branches to 426 by the year-end.

The bank's Assistant Manager (Marketing), Mr Joseph K. Joseph, said the bank was working towards getting one lakh new savings bank accounts in the next one month.

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