Uco Bank is planning a follow-on public offer of its shares to raise Rs200-250 crore in 2008 to fund expansion, its chairman SK Goel said. "We also have plans to raise Rs200 crore in Tier-II debt by end-March," he said.

Uco Bank plans to convert 3 billion of equity shares into preference shares as part of a capital restructuring exercise, Goel said, adding the bank hopes to get the approval from the government in a month. "After that, I can go for a follow-on public issue to raise Rs200-250 crore either in the last quarter of 2007-08 or the first quarter of 2008-09," he said.

The share sale will lead to dilution of government holding to 55 per cent from the present 76 per cent, he said.

Kotak Mahindra Bank is planning to issue up to 17 million shares, for which Citigroup is one of the managers, its chief financial officer Jaimin Bhatt said.

Kotak Mahindra Bank had received approval in July to issue shares in domestic and/or international markets.

Another private sector lender Yes Bank, meanwhile, said it had already raised Rs182 crore over the past week through private placement of bonds to augment its capital adequacy.

Yes Bank said in a statement it had placed unsecured, redeemable, non-convertible, subordinated bonds worth Rs50 crore with an option to retain the oversubscription.

The fund-raising is part of a plan to raise Rs840 crore in equity and debt. Yes Bank said it would privately place or sell 20 million shares to qualified institutional buyers to raise up to Rs50 crore. The rest would be raised in Tier I and Tier II debt, it said.

Indian banks, including the country''s largest lender State Bank of India, are raising debt and equity to sustain high loan growth and meet the central bank''s capital adequacy norms.

SBI plans to sell shares worth Rs10,000 crore around the end of 2007 and Bank of India also plans to sell shares to raise capital. Number 2 ICICI Bank raised $4.9 billion this year in the country''s biggest-ever share sale.

Indian banks have also been raising funds to meet robust demand for loans from consumers and companies.

also see : General reports on Banks & Financial Institutions
Other reports on UCO Bank
Other reports on Yes Bank
Other reports on Kotak Mahindra Bank