Indian Bank plans to raise about 15 billion Indian rupees through a qualified institutional placement, Moneycontrol reported May 22, citing sources familiar with the matter.

The bank plans to launch the issuance in September in order to raise growth capital, one of the sources said.

The qualified institutional placement would enable the Indian government to reduce its stake in Indian Bank so it can meet regulatory requirements, a second source said. Meanwhile, the bank's management is keen to revive the operations of its unit Ind Bank Housing Ltd. and scale up its book, the source added.

As of May 22, US$1 was equivalent to 69.71 Indian rupees.