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The Thrissur-headquartered South Indian Bank will soon be raising fresh equity from foreign institutional investors.
Foreign holding in the bank {including foreign institutional investors (FIIs), non-institutional holders and non-resident Indians (NRIs)} is presently 46 per cent of the share capital and close to the 49 per cent limit on their holding. The bank has recently secured approval from the board and shareholders to raise the limit on foreign share holding to 59 per cent.
VG Mathew, Managing Director & CEO, told BusinessLine that there was consistent interest from FIIs about investing in the bank. Fresh equity from FIIs would be raised after the bank receives approval from the Foreign Investment Promotion Board (FIPB), he said.
As part of plans to beef up capital in anticipation of a pick up in credit later this year, the bank has secured shareholder approval to further increase its share capital by issue of shares of ₹20 crore in nominal value as an enabling measure, Mathew said.
The mode, timing and price of the fresh issue will be decided later, he said.
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