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State Bank of Mysore is to go for institutional placement programme (IPP) by March 31, to increase minimum public shareholding to 10 per cent.
“Current public shareholding (non SBI) is 7.67 per cent. We plan to go for IPP to offload the balance (2.33 per cent) to raise between Rs 70–80 crore,” said Sharad Sharma, Managing Director, State Bank of Mysore.
Bank recently got parent bank’s (SBI) approval to launch IPP, to comply with the SEBI norm of increasing minimum public shareholding.
“We are likely to start the IPP process after getting board approval shortly and we may raise money through mutual funds, insurance companies and other bodies approved by SEBI,” Sharma said.
In a week’s time, the bank is planning to finalise merchant bankers to the IPP issue.
In order to achieve capital adequacy ratio according to Basel-II norms, the bank is exploring qualified institutions placement / rights issue to raise Rs 700-800 crore.
“This is likely to be done in the first-quarter of financial year 2013-14,” said Sharma.
Addressing reporters on bank’s third quarter performance, Sharma said as “Karnataka was reeling under drought for the third consecutive year, the bank has restructured 63,800 accounts amounting to Rs 707 crore in agriculture.”
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