The Hindu Business Line : Indian Bank likely to float IPO in 2007

DR K.C. CHAKRABARTY, Chairman and Managing Director, Indian Bank, addressing a press conference in the Capital on Friday. The bank has paid a dividend of Rs 101 crore for the financial year ended March 31, 2006, to the Central Government. Dr Chakrabarty handed over the dividend cheque to the Union Finance Minister, Mr P. Chidambaram, at North Block on Friday. — Kamal Narang

New Delhi , June 2

Indian Bank hopes to tap the capital market with an initial public offering (IPO) during the first quarter of calendar 2007, the Chairman and Managing Director of the bank, Dr K.C.Chakrabarty, said here today.

"We hope to do an IPO sometime during early 2007. The final decision on the timing and amount of equity has not been decided as yet. A clear picture may emerge after September," Dr Chakrabarty told a press conference.

Indian Bank is looking to convert a portion of its equity capital into preference share capital before approaching the market with an IPO.

"I still cannot say with certainty as to when and whether we would be able to convert a portion of our equity into preference capital", he said, adding that this depended on Parliamentary nod for change in certain banking related legislation.

As on March 31, 2006, Indian Bank had a paid-up capital of Rs 743.82 crore. Dr Chakrabarty also said that efforts are being made to strengthen Indian Bank to face the consolidation wave that may impact the Indian banking industry post-2009.

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Indian Bank likely to float IPO in 2007