Two state-owned Indian lenders aiming to raise funds in a bid meet growth targets and fetch capital for regulatory requirements have dropped their plans due to the disruption to markets caused by the coronavirus pandemic, said sources.
As per the report, Bank of India had plans to raise around 20 billion rupees ($269 million) through qualified institutional placement (QIP), a common capital-raising tool in India, by the end of March.
“These are not normal times and it makes sense to launch it when the right time comes,” reported a leading English daily.
Central Bank of India was also planning to raise five billion rupees ($67 million) this quarter by issuing so-called Basel-III compliant bonds.
“A board meeting will be held next week and we will announce the decision then but it makes no sense to enter such a disruptive market,” said a senior bank executive, reported The Economic Times.
Besides, India’s benchmark indexes, Sensex and Nifty, are on the declining side as the global coronavirus outbreak has spooked markets across regions.