The bank has a board approval to raise up to Rs 4,000 crore in equity.
The Chennai-based lender raised the capital at the floor price of Rs 142.15 fixed a couple of days back, without offering any discount to investors. Market regulator Securities & Exchange Board of India allows issuers to offer up to 5% discount on the floor price.
Chief executive Padmaja Chunduru earlier said that the bank was comfortably placed with capital adequacy ratio at 15.71% as on March 2021 against the regulatory minimum of 10.875% and had no urgency to raise capital.
The fresh capital would act as a cushion against any possible future shock as suggested by Reserve Bank of India governor Shaktikanta Das.
Meanwhile, in its annual report for FY21, the bank said that it would focus on cost optimization and increasing fee income to improve the bottom line.
“Business growth, while depending on the revival of the economy, will also hinge on focus towards digital transformation and adapting to the new norms driven by the pandemic,” the bank said in its annual report.
The more widespread and intense second wave of the pandemic since the start of FY22, caused a setback to the country’s economic recovery, although there is fresh optimism for a turnaround after the slowing down of the number of Covid-19 cases.
