The Telegraph
Monday , May 5 , 2014
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Banks defer QIPs

Mumbai, May 4 (PTI): Public sector banks, which delayed their qualified institutional placement (QIP) issues last year because of weak market conditions, are still not confident of the response and say they will wait for a few more months to do so.

Banks say they want to gauge market conditions as well as investor appetite after the elections before raising funds through the QIP route.

The results of the ongoing general elections in India will be declared on May 16.

Dena Bank, which plans to raise around Rs 570 crore through QIP, says that although the markets have improved, conditions are still not favourable.

“Markets are still not conducive for QIPs. We will be looking at raising the money only after June,” Dena Bank executive director R.K. Takker said.

Indian Overseas Bank, which got board approval to raise Rs 350 crore last December, said it would require 3-4 months for selling its shares through QIP.

“The issue will definitely be in this year, but it will take three-four months as we have to see market sentiments first,” its chairman and managing director M. Narendra said.

IDBI Bank said it planned to raise money via the QIP route, but not in April-June.

“We will be looking at QIP definitely, but not in the first quarter. Also, pricing has to be good and there has to be enough interest from the market,” said IDBI Bank chief financial officer P. Sitaram.