Austrian lender Volksbanken has announced that there are chances that it might take the help of bonds issued by the regional savings banks in order to cover the capital gap that can emerge in 2014.

The bank has said that it will take the action in order to avoid taking any further help from state. Regulators have made it very clear to the bank that they need to maintain a capital ratio of 13.6% when it comes to risk-weighted assets.

This revelation by the regulators has made it important for the bank to make some arrangements for fresh capital. When asked from Volksbanken AG, it spokesperson was of the view that they have been working on ways by which they strengthen their balance sheet.

He continued by affirming that they want more profit should be generated at the regional owners. For now, it is unknown about the capital target limit for Volksbanken.

Till now, the bank has received 1.35 billion euros in form of state aid. Now, the bank wants to come up with the strategies that can avoid it to take further state aid.

"They are doing relatively well. That doesn't mean they won't need additional equity from the owners but it also doesn't mean that they need it urgently now", said one of the sources.