IndusInd Bank's promoter IndusInd International Holdings has completed its capital raising process via rights issue and have paid up the balanced amount for the warrants. Sumant Kathpalia, MD and CEO of IndusInd Bank spoke about the fund infusion as well as what it means for the bank in conversation with CNBC-TV18.

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First up, he said, "We have raised Rs 2,025 crore. With these warrants we have CET-I ratio which increased by 75 basis points (bps) and overall capital adequacy ratio at about 17.6 percent."

"We have enough capital now to pivot towards the growth as the economy improves," he added.

He highlighted that promoters are with the bank for the long-term. "

"Growth of the bank is not far away. We have done what we needed to do and I believe this bank is now ready with the economic growth happening to capture the growth story of India," Kathpalia pointed out.

Speaking about the bank's asset growth, the MD and CEO said, "We were rechurning the corporate book and it is almost over. Corporate will grow at 6-8 percent, the SME part of the corporate will grow at about 10-15 percent and then the retail part of the business will grow at 20-30 percent, so we will grow at 16-18 percent overall. I believe we will be self-sufficient that we do not want to go to the markets for at least 12-18 months unless and until there is inorganic opportunity which comes along," he mentioned.

In terms of inorganic growth, Kathpalia said, "We always look at opportunities which complement us. We are exploring two-three verticals, we want to create the dominance in rural area completely, there are some products in the affluent side where we lack expertise and it compliments us in a big way. There is opportunity to take some stake in para-banking, it may not be a dominant stake."

"I don’t think we are in a hurry to go for an acquisition. We continuously evaluate… It has to be a deal which has good value proposition for us and is accretive to RoE and adds value to the bank," he added.

The unsecured loan book for the bank on the retail side is less than 5 percent of overall the book. "Personal loan book is about Rs 3,000 crore and credit card business is about Rs 5,000 crore. These businesses have been in the run for the last seven years and we have not grown that business. On the MSME side we have a book of Rs 700 crore. We don't believe in growing unsecured very fast," he said.

Watch the video for the complete interview.

(Edited by : Jerome)