The Hindu Business Line : ING Vysya posts Rs 29.2-crore loss

ING VYSYA Bank has proposed increasing its capital by Rs 300 crore through a rights issue for expanding lending and to partly offset the erosion in capital during the current year.

Briefing reporters here today on the bank's performance for the second quarter of the financial year, Mr Bart Hellemans, Managing Director and Chief Executive Officer, said the Tier-I capital had eroded to 5.75 per cent in the second quarter, down from the March figure of 6.14 per cent.

The Tier-I funds, which included both equity and free reserves, was Rs 473.57 crore as against Rs 539.43 crore in March this year.

"We are engaged with the regulators for raising the funds," Mr Hellemans said. For the second quarter of the year ended September, the bank posted a net loss of Rs 29.2 crore as against a profit of Rs 25 crore during the corresponding period of the previous year.

The losses were driven by the sharp rise in yields. Ten-year yields were 6.23 per cent in September from 5.1 per cent in March 2004.

As a result, the bank incurred a large depreciation. Besides, income from treasury operations also dropped.

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