Indian Bank FPO likely in June-July

Government owned Indian Bank Wednesday said its follow-on-public offer of about Rs 1,500 crore was expected hit the market in June or July.

Chennai: Government owned Indian Bank Wednesday said its follow-on-public offer of about Rs 1,500 crore was expected hit the market in June or July.
    
Indian Bank chairman and managing director T.M Bhasin told reporters said the Draft Red Herring Prospectus for the issue will be filed by mid-may this year.
    
The bank plans to raise around Rs 1500 crore through the FPO route to fund its business growth.
    
On MSME (Micro, Small and Medium Enterprises) loans, he said that it had grown around 49 percent CAGR (Compound Annual Growth rate) over the years and expected a similar trend this year too.
   
On the micro-finance front, the bank planned to increase the share of credit disbursements from the present 32 percent to 50 percent by March 2012, he said.
    
To a question, Bhasin said that norms for lending to builders have been tightened now and this includes two legal attorneys verifying a land title as against the previous policy of one attorney for the purpose.
    
Meanwhile, the Indian Bank has entered into an agreement with automobile manufacturer Bajaj Auto Ltd to finance three wheelers, offering the prospective borrower about 85 percent of the vehicle's on road price.
    
N Eshwaran, General Manager, MSME, Indian Bank and RC Maheshwari, President, Commercial Vehicle Business, Bajaj Auto Ltd, signed a MoU in the presence of Indian Bank CMD TM Bhasin.
    
Bhasin said the bank would finance about 85 percent of the price of the three-wheeler, which would cost Rs 1.47 lakh.
    
He said the target was to finance 1000 vehicles a month in the coming months and then 'augment that based on our experience.'
   
Today's initiative was keeping in with the bank's policy to increase lending in the auto sector, he said adding the bank will open savings bank account for the borrowers under this scheme and ''persuade them to save daily.'
   
Maheshwari said the loan period was for 60 months at a 'reasonable' rate of interest at 11.5 percent.

PTI

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