ING Vysya Bank to raise Rs 2,000 crore via preferential shares, QIP

Bangalore-headquartered private lender ING Vysya Bank said on Wednesday that it hopes to raise Rs 2,000 crore in fresh capital by the first half of next month through a mix of preferential share allotment to the promoters as well as a qualified institutional placement.. "We hope to complete the Rs 2,000-crore fund-raising in the first half of June. We will be issuing fresh shares to the promoters ING Group so that it maintains its equity holding at the current level of 43 per cent. There will also be a QIP issue," a bank spokesperson told PTI from Bangalore.. He did not specify how much will be preferential issue and how much will be the QIP.. This is the third capital infusion by the Dutch group into the venture. In June 2011, the bank had raised Rs 970 crore through a preferential issue to the promoters apart from QIPs.. As to reports in a section of media that the parent Dutch financial services group ING is planning to exit the domestic market, the spokesperson said, "If they were planning to quit, where is the question of equity infusion?". ING Group holds 43 per cent in ING Vysya Bank, which has 542 branches in the country, 60 per cent are in the South.. Last time the bank raised capital, IDFC Capital was the deal maker, however, the spokesman said the bank has not appointed any i-banker so far for this issue.. Earlier this year, ING Vysya exited its life insurance business by selling its 26 per cent stake to the joint venture partner Exide for Rs 1,100 crore. At that time ING had said that the move was part of a broader strategy to exit its Asian insurance and investment management businesses.. Last fiscal year, ING Vysya had reported a 34 per cent spike in its net profit at Rs 613 crore, while for the March quarter too it had a similar spike in net income to Rs 170 crore on improved asset quality, reporting for the 14th consecutive quarter high double-digit profit growth.. During the year, ING Vysya's net interest income rose 33 per cent to Rs 423.7 crore from Rs 319.2 crore, helping improve the net interest margin to 3.73 per cent from 3.29 per cent a year ago.

ING Vysya Bank to raise Rs 2,000 crore via preferential shares, QIP

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