City Union Bank to raise Rs 300 cr via QIP

Our Bureau Chennai | Updated on June 24, 2011


City Union Bank Ltd has informed BSE that the board of directors meeting held on Friday has resolved to augment capital up to Rs 300 Crores (inclusive of premium) through a process of Qualified Institutional Placement (QIP).

The bank expects to approach the shareholders for their approval at the ensuing annual general meeting as also subject to the applicable laws and regulations including the guidelines issued by the RBI.

Dr N. Kamakodi, Managing Director, City Union Bank, told Business Line, the additional capital will help the bank expand its lending by Rs 3,000 crore for the current financial year.

This augmentation in capital by Rs 300 crore will increase the bank's capital adequacy ratio by 150 basis points. City Union Bank's CAR was at 12.45 as on March 31.

The approval for raising this QIP was received last year during August, he said.

Published on June 24, 2011

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