New Delhi: Bank of India (BOI) on Wednesday said it plans to raise capital through issuance of bonds and shares up to an amount 16,000 crore.
The state-run entity seek shareholders’ approval at its Extraordinary General Meeting (EGM) on September 19, the lender said in a regulatory filing.
The bank said it plans to issue fresh equity shares up to an amount of Rs 8,000 crore in such a way that the government’s shareholding does not fall below 51 per cent.
It will also seek approval for issuing perpetual debt instruments, including non-convertible debentures (NCDs), for an amount not exceeding Rs 8,000 crore.
It said the allotment of securities shall be through qualified institutional placement (QIP), public issue, rights issue, private placement or such other mode of issue, with or without over-allotment option.
Explaining the rationale behind the proposed fund mop-up, it said the Indian banking system has been implementing Basel III guidelines since April 2013 in a phased manner and the norms are to be fully implemented by September 30, 2020.
“The bank has been growing very diligently and cautiously for the last many years and there is constant requirement of capital. In order to meet this growing requirement, bank needs long term capital,” it said.
