A recent press report said that the Thrissur-headquartered South Indian Bank has planned to raise capital during the current fiscal to take care of its future requirement and also to start a non-banking finance company as a fully-owned subsidiary.
Dr A.V. Joseph, SIB’s Chief Executive Officer and Managing Director, told the press that the bank has proposed to raise Rs 1,000 crore to start the NBFC arm, which would focus on bullion business and also meet its future business growth plans.
The bank is targeting a business volume of Rs 62,000 crore this fiscal and has planned to add another 59 branches, which will take its network to 700 by March 2012.
The bank has got the in-principle go-ahead from the banking regulator last month for altering its object clause in the Memorandum of Association to form a non-deposit-taking NBFC, as a wholly-owned subsidiary of the bank. He said he would place it before the board and the shareholders’ for approval and complete the process by September.
The bank’s net profit grew 25 per cent to Rs 293 crore in the just-ended fiscal against Rs 234 crore in end March 2010. The bank has recommended a dividend of 50 per cent (40 per cent).
The total business of the bank has crossed the targeted of Rs 50,000-crore. The bank is in the retail loan segment with products like Housing Loan, Educational Loan, Gold loan etc.