Indian Bank plans FPO, AT-1 bonds

Indian Bank is planning to come out with a follow-on public offer (FPO) this fiscal to reduce the government’s shareholding to less than 75 per cent from 82 per cent now, according to SEBI guidelines. The bank is expected to issue 4.75 crore equity shares through the proposed FPO. “Post-FPO, CRAR (Capital to Risk Weighted Assets Ratio) of the bank to be above 15-16 per cent (13.64 per cent now),” said Kishor Kharat, MD & CEO, Indian Bank. The bank may also raise Basel-III compliant AT-1 (additional Tier 1) bonds during this fiscal. It will be in excess of ₹1,000 crore. The bank has planned to grow its business to ₹3.5 lakh crore this year from ₹3.14 lakh crore in FY17.