"We had planned for the QIP, but market conditions are not very conducive for it at the moment," Dena Bank Chairman and Managing Director Ashwani Kumar said.
The state-run lender, which has to maintain government's holding at 55.24 percent, has scope to raise around Rs 570 crore, depending on the price, he said.
Last month, SBI had raised Rs 8,032 crore through the QIP route, making it the biggest-ever equity sale via this route. But the issue was bailed out by LIC and other public lenders and the share was sold at the lowest end of the band at Rs 1,565 apiece. SBI was planning to raise Rs 9,400 crore.
That LIC has heavily invested into SBI is clear from the fact that post-QIP, the state-run insurance giant's stake in the banking behemoth rose 2.75 percent to 14.99 percent.
Kumar, however, said the QIP plan has been put on hold for the moment and the bank may go for it if market conditions become favourable. "The idea has only been deferred for the time being. We can also raise money in this quarter but it will all depend on the market conditions."
Last December, the government infused Rs 700 crore into the Mumbai-based mid-sized lender as part of the overall Rs 14,000-crore recapitalisation of PSU banks. Post-infusion, the government's holding in the bank rose from 55.24 percent to 66.57 percent.
Kumar said the bank is looking at raising money by selling tier I, tier II bonds or by preferential issuance of equity in the current quarter.
"We are looking to raise funds through other options (besides QIP). We have a headroom to raise Rs 1,500 crore via tier II bonds. We can go for preferential issuance also."
"We plan to raise Rs 600-700 crore up to March 14," he said, adding the bank is also in talks with LIC for raising money through tier I capital.
Dena Bank's capital adequacy ratio under Basel III norms stands at 10.61 percent as of the December quarter with tier I at 7.31 percent, below the RBI mandate of 8 percent.
The public lender yesterday reported a 67 percent decline in net profit at Rs 67.80 crore in the third quarter December 31 on account of higher provisioning.


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