BOI may raise 5-10 bn rupees in FY10

State-run Bank of India may need to raise about 5-10 billion rupees via tier II bonds in rest of 2009/10 to support business growth,a senior official said on Wednesday.

The bank has already raised 10 billion rupees via bonds during the year and has a headroom to raise 130 billion rupees in the tier II segment,BA Prabhakar,executive director,told Reuters in an interview over telephone.

The fund raising would depend on pricing,loan growth and liquidity available with the bank and there would be no further capital requirement during the year,he said.

The bank is targeting a loan growth of 15-16 per cent with a marginal upward bias,compared with its previous target of 20 percent,he added.