BUSINESS

Market boom: Banks raise over Rs 11,000 cr

Source:PTI
November 22, 2006 12:22 IST
Surging stock markets have helped 11 banks to garner a whopping Rs 11,067 crore (Rs 110.67 billion) to meet their capital requirements during 2005-06.

"Encouraged by the a firm trend in the prices of the banking sector, the 11 banks (six public sector and five private sector banks) raised Rs 11,067 crore from the equity market," a RBI report on 'Trend and Progress of Banking in India' said.

The total capital resources raised during the year was higher by 48.67 per cent as compared to Rs 7,444 crore (Rs 74.44 billion) in the previous year.

The equity issue amounting to Rs 5,413 crore (Rs 54.13 billion) were mobilised by the public sector banks-- Allahabad Bank, OBC, Syndicate Bank, Andhra Bank, BoB and Union Bank of India.

On the contrary, five private sectors banks were able garner sum totaling Rs 5,654 crore (Rs 56.54 billion), a tad higher than what six PSBs could garner.

The major fund raiser in private sector space was ICICI Bank, which alone mopped up Rs 5,101 crore (Rs 51.01 billion) through its follow on offer. Other banks were Yes Bank, South Indian Bank, Lakshmi Vilas Bank and United Western Bank.

Interestingly, none of the banks raised debt through public issues. Resources (both by private and public sectors banks) mobilised through the private placement during the year almost doubled to Rs 30,151 crore (Rs 301.51 billion) as against Rs 15,219 crore (Rs 152.19 billion) in the previous year.

As many as 97 private placements were made in 2005-06 against 87 made last year.

Source: PTI
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