Despite the negative outlook on banks by rating agencies, IndusInd Bank has raised 2,000 crore through a qualified institutional placement (QIP) the largest offering by any bank this year. The Bank has managed to raise funds by selling shares at 384, which is a 3% premium of the floor price.

Almost two-thirds of the investments came from foreign institutional investors (FII), while the rest were from domestic insurance companies and mutual funds. The last time IndusInd Bank had raised funds was in September 2010 when it sold shares at Rs 234 to raise 1,150 crore.

"It is not that we needed capital, but we raise money when we don't need it," said Romesh Sobti, MD & CEO, IndusInd Bank. "This is growth capital which will be used to fund our organic growth requirements and not for acquisitions. But we will look at acquiring a portfolio if the opportunity presents itself," he added.

Earlier, the bank had informed the Bombay Stock Exchange (BSE) that the board of directors had approved allotment of 5.21 lakh shares at a price of 384 per equity share (including a premium of 374 per equity share) on December 5, aggregating to just over 2,000 crore to qualified institutional buyers. The equity issue has also resulted in promoters' stake in the bank coming down by two percentage points to 17.5%.

According to Reserve Bank of India's (RBI) current policy, private banks are expected to eventually bring down promoter stake to 10%. However, some believe that the central bank may revise this limit to 15%.

Courtesy: The Times of India, December 2012