The Hindu Business Line : Bank of India sees `no need for public issue'

WITH a capital adequacy ratio of 11.40 per cent and "enough headroom" for raising Tier-II capital, Bank of India does not see any need to go to the capital market for raising funds, although the option "is up my sleeve", according to the Chairman and Managing Director, Mr M. Balachandran.

At a press conference here , Mr Balachandran said that bank's CAR would be "comfortable" even after Basel-II kicks in and credit grows by an expected rate of 23 per cent this year.

Mr Balachandran was here in connection with the launch of an online facility to exportersfor payment of fees to the Directorate General of Foreign Trade.

A press release of the bank mentions that DGFT gives a 25 per cent rebate over normal fees for online payments.

Bank of India, with operations in over 25 locations abroad, has made arrangements for accessing enough funds for its lending operations.

Mr Balachandran said that the bank recently raised $250 million (Rs 1,125 crore) through an issue of `Medium Term Notes', and had an option to raise a further $750 million.

At an interest rate of 0.83 per cent over Libor that the bonds carry, "we got the country's second best ever rates (after SBI)", Mr Balachandran said.

The bank plans to expand its international operations. It proposes to open branches in Beijing, Doha and Antwerp (Belgium) and a wholly owned subsidiary in Tanzania.

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