The board of Indian Bank on Friday has approved a capital raising plan of Rs 7,000 crore. This includes raising an equity capital of Rs 4,000 crore through qualified institutional placements, a follow-on offer, rights issue or a combination of these.

Another Rs 3,000 crore will come from AT1/tier-2 bonds in one or more tranches.

In a statement to the bourses, Indian Bank said it will obtain shareholders’ approval to raise capital at an EGM scheduled in March.

The bank’s capital adequacy ratio has improved to 14.06 per cent for the quarter ended December 2020 from 13.64 per cent for the September quarter.

The public sector bank has posted a net profit of Rs 514 crore for the quarter ended December 31, 2020. Net loss in the corresponding year-ago quarter was Rs 1,739 crore.

The bank’s net revenue grew 15 per cent at Rs 5,710 crore from Rs 4,966 crore for the third quarter of 2019-20.

Yes Bank

Private sector lender Yes Bank has reported a consolidated net profit of Rs 147 crore for the December quarter and a jump in asset quality stress because of Covid-19. The bank had suffered a loss of Rs 18,564 crore in the year-ago period when it recognised all the hidden stress in the balance sheet.

Managing director and chief executive Prashant Kumar said this is the third straight quarter where the bank has shown a rise in profits and it continues with its de-risking strategy, which led to a marginal rise of 1.7 per cent in advances to Rs 1.69 lakh crore.

Net NPA stood at 2.35 per cent during the quarter, against 4.22 per cent a year ago."We expect that with all the efforts the bank has been making, we would definitely be able to manage and maintain gross NPA below 10 per cent and net NPA below 3 per cent," said Padmaja Chunduru, MD and CEO of Indian Bank.Following the amalgamation of Allahabad Bank, 166 branches, 25 zonal offices, 9 currency chests, 3 service branches have been rationalised so far.Indian Bank scrips at Rs 90.90 were up 1.56 per cent over the previous close at Bombay Stock Exchange.