Chennai-based Indian Bank has also secured board approval for fundraising measures that include a ₹5,000 crore qualified institutional placement (QIP).
“Our capital adequacy ratio remains strong at around 18 per cent and we do not necessary capital for growth. However, with the implementation of ECL norms, we may consider raising capital, potentially through a QIP,” Binod Kumar, managing director (MD) and chief executive officer (CEO) of Indian Bank, informed Business Standard. “We already have board approval in place, and a ₹5,000 crore QIP forms part of the plan if required.”
Kumar declared the bank was still assessing the provisioning impact of the ECL framework and expected greater clarity within the next 10 to 15 days. “We aim to absorb the impact quickly, possibly within the first half of the year,” he added.
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