Date:01/10/2004 URL: http://www.thehindubusinessline.com/2004/10/01/stories/2004100101830600.htm

Back BoR to raise Rs 100 cr through Tier II issue

Our Bureau

Mumbai , Sept. 30

BANK of Rajasthan is planning to expand its capital base by raising Tier II capital for Rs 100 crore in the next two weeks, said Mr Deepak Sarupuria, Executive Director of the bank.

The Tier II issue will comprise subordinated bonds, which will increase the total subordinated bonds of the bank to Rs 128 crore.

Mr Sarupuria was speaking at a press conference organised to define the growth and expansion plans of the bank.

Market sources had earlier indicated the bank was also considering raising equity capital worth Rs 100 crore through private placement next month. The issue would be at a premium of Rs 45 to Rs 50Officials did not spell out any details.

"Talks are going on with foreign investors in Singapore for investment in the bank. This process of private placement is in the initial stages and might near completion in about a month," said Mr S.K. Tayal, Director and one of the promoters of the bank, speaking at the sidelines of the press conference.