Bank QIPs At Multi-Year High
Indian banks are raising close to Rs 69,000 crore in equity capital this fiscal year, making it the highest equity raising from lenders in recent times.
The fund raising includes money raised via qualified institutional placements and preferential allotments. It includes HDFC Bank Ltd.'s plan to raise up to Rs 24,000 crore, which was approved by the lender's board on Wednesday.
Data sourced from Prime Database shows that banks have raised Rs 33,248 crore through QIP issues so far this fiscal. The funds raised through this route this year alone are higher than the sum of funds raised via the QIP route in the last five years.
The fund raising has been split across private and public sector banks. Among public sector banks, SBI raised Rs 15,000 crore earlier this year. Punjab National Bank, Union Bank and Syndicate Bank concluded their QIP issues this month.
Other state-owned lenders like Bank of Baroda, Bank of India, Allahabad Bank and Andhra Bank have also lined up share sale offers and have board approvals in place. So we could see further equity issuances from banks in this fiscal.