CAPITAL NEEDED FOR GROWTH

BANKS ARE in dire need of capital. Even as some PSBs are ceding their share, private banks are out in the market trying to raise capital. While LIC stepped in to rescue IDBI bank, HDFC Bank is getting about ` 24,000 crore this year. Recently, foreign investor Prem Watsa got the nod for a majority stake in Catholic Syrian Bank. New capital with new management is good news for private banks. A case in point is the revival of IndusInd Bank and RBL Bank by new managements. And last year when Axis Bank was in trouble, Bain Capital stepped in. The best way ahead for private banks is to keep performing to get capital, and thus capture better growth.