Bank of India has received shareholders’ approval to raise fresh capital of Rs 8,000 crore, according to a regulatory filing on the outcome of the bank's extra-ordinary general meeting (EGM) held on September 19.
The bank also received the approval to set off accumulated losses of Rs 23,782 crore as of March 31, 2020, by utilising the balance in the share premium account.
The funds will be raised “by way of equity shares; or Tier I/Tier II bonds by way of public issue or right issue or preferential issue; or qualified institutional placement (QIP) or private placement; or any other permitted mode at an appropriate time whether at a discount or premium to the market price,” the bank informed the exchanges.
The bank had in August 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 percent.
Explaining the rationale behind the proposed fund mop-up, it had 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 a constant requirement of capital. In order to meet this growing requirement, bank needs long term capital," it said.
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