Kolkata: Syndicate Bank has sought the government's approval to raise Rs. 1,100 crore through qualified institutional placement (QIP) route.
“We have written to the government seeking permission to raise Rs. 1,100 crore through the QIP route,” Syndicate Bank chairman and managing director Sudhir Kumar Jain said.
If the state-run lender failed to obtain the permission, it would go for dilution of stake from 67.3 per cent to 62 per cent, he told reporters on the sidelines of the Ficci Banking Conclave in Kolkata on Tuesday.
The bank is on a sound footing in terms of capital adequacy, Mr Jain said.
“The bank has drawn up vision 2020 which envisages a yearly credit growth of 19 per cent.” Going by that, there would be a need to raise capital to meet future requirements, he added.
The bank has targetted a credit growth of 19 per cent and deposits growth of 17 per cent this fiscal year.
On the asset quality front, Mr Jain said gross NPAs (non-performing assets) as on March 31, 2014 were 2.61 per cent and some fresh slippages had accrued since then.
In the first quarter of the current fiscal year, Syndicate Bank sold NPAs worth Rs. 200 crore to asset reconstruction companies (ARCs).