Chennai based Indian bank plans to have an IPO in order to sell 8,59,50,000 shares and raise about 800-900 crore. The IPO is expected to hit between 1 to 2nd week of January and is being floated to meet the Basel-II norms of capital adequacy.
1) It has a infrastructure sharing agreement with Oriental Bank of Commerce and Mumbai-based Corporation Bank.
2) The bank did a business of 70,000 crore each year (a 17% growth over last year).
3) The profits rose last year by 38%, primarily due to 25% increase its credit and a 17% increase in deposits.
4) The bank has an authorized capital of 1,500cr, paid up capital of 343 crore, preferential capital of 400 cr, and has over 2,000 crore in reserves.
5) The Net interest margin of the bank is a healthy figure of 3.57% and its NPA is less than 0.45%.
More updates awaited when I get my hand of the detailed balance sheet and the price band of the IPO is finalized.