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Elina Mohanty

Mumbai , Aug. 1

Bank of Rajasthan plans to come out with a Rs 100-crore rights issue by December to shore up its capital base as the bank expects significant growth this fiscal.

The bank's capital adequacy ratio stands at 12 per cent as of June 30.The bank is also planning to bring down the promoters' share from 44.16 per cent to 30 per cent by 2009 through follow-on public issues, said Dr Pravin Kumar Tayal, Chairman, Bank of Rajasthan.

The bank plans to set up a data centre at Jaipur within the next two to three months to centralise its operations. The data centre would have a capacity of 100 seats. Each executive would handle customers of three to four branches, said Dr Tayal.

Mobile banking

"The bank plans to introduce mobile banking through the data centre," he said. It also expects to set up four more data centres at Mumbai, Kolkata, Chennai and Delhi. The bank would recruit 300 sales agents for the data centres through campus recruitments.

BoR hopes to reduce its net non-performing assets (NPAs) to almost half per cent during 2006-07 and bring it down to zero by 2008-09. The share of net NPAs to total assets as on June 30, 2006 was 1.01 per cent or Rs 40 crore. "The bank plans to use the combination of one time settlement, rehabilitation of accounts and legal action to reduce the NPAs," he added. The gross NPAs of the bank stand at 3.31 per cent for the first quarter, 2006. The bank which has already hiked its deposit rate by 50 basis may increase its lending rate by 25 basis points.

"We also plan to set up 30 new branches during the year throughout the country," he said. The bank scrip closed at Rs 30.90, down from its previous close of Rs 31.15 on the BSE.

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