Mumbai: Centurion Bank has requested the International Finance Corporation (IFC) and the Asian Development Bank (ADB) to increase their equity holding in the bank. At present, IFC holds 10.2 per cent while ADB holds 8.4 per cent equity respectively in Centurion Bank.

The bank has made a similar proposal to one of its other foreign shareholders, the Keppel Group of Singapore, to increase its capital from 17.7 to 20 per cent.

Centurion Bank needs to spruce up its capital, as its present capital adequacy ratio is below the RBI-stipulated 9 per cent. To reach the 9-per cent capital adequacy level, the bank needs an infusion of Rs 120 crore.

The three foreign shareholders of the bank - the Keppel Group, IFC and ADB - are keen that the banks capital be increased. Nevertheless, there has not been a commitment from either of them yet.

In 1999-99, when Centurion Bank took over the assets and liabilities of the 20 Century Finance Corporation, one of the conditions was that if the banks NPAs crossed a certain level, then the promoters will have to make good the losses by bringing in fresh capital. The promoters will have to bring in about Rs 25 crore this year to meet this condition.