SIB, City Union Bank to raise funds due to the recent market rally

The recent market rally has prompted some small-sized private banks to revive their fund-raising plans. According to investment bankers, City Union Bank and South Indian Bank, which were forced to defer their equity offerings last year, are planning to raise money by selling shares to institutional investors.

The buzz is that City Union Bank is planning to raise about 300 crore, while South Indian Bank will raise about 1,000 crore to meet capital adequacy requirements.

On Thursday, shares of City Union Bank closed at 46.15, down 2.33% while South Indian Bank closed at 25.85,down 1.34% on the BSE.