Private sector lender IDBI Bank plans to raise up to Rs 2,000 crore in capital through tier-II bonds to enhance capital adequacy. In September, Life Insurance Corporation (LIC) of India and the Government of India (GoI) together infused Rs 9,300 crore as equity capital into the bank.
After the capital infusion, the bank has shown improvement in all prompt corrective action (PCA) criteria except profitability. Coming out of the PCA framework will help IDBI Bank to normalise its banking operations with approval from the Reserve Bank of India, CRISIL said in a statement.
The bank reported overall capital adequacy ratio of 11.98 per cent in September this year (6.22 per cent in September 2018) with tier I ratio of 9.52 per cent in September this year (4.22 per cent in the same period last year).
Source: Business Standard