The bank would be weighing the options of dilution of stake in the general insurance joint venture Universal Sompo and sell off non-core assets like properties in places like Mumbai, MD and CEO of Allahabad Bank S S Mallikarjuna Rao told reporters here on Friday.
It is interesting to note that RBI’s capital has remained unchanged, but its reserves have changed significantly over the years
The RBI board last month decided to set an expert committee to decide the economic capital framework of the RBI to determine the appropriate amount of reserves which the central bank can hold
The financials of large private sector banks weakened further in FY18, but are better than those of their state-owned peers, 11 of which are under the central bank's prompt corrective action (PCA) framework.
This will be one of the biggest QIP since the one done by SBI to raise Rs 15,000 crore in June 2017.
Of the Rs 11,337 crore capital infusion plan, Rs 1,790 crore is for Allahabad Bank, Rs 2,019 crore for Andhra Bank, Rs 2,555 crore for Corporation Bank, Rs 2,157 crore for Indian Overseas Bank and Rs 2,816 crore for Punjab National Bank
This is the second time in little over a month that the flagship carrier has floated tenders for short tenure loans even as the government is working on the modalities for the stake sale.
Capital need estimates have fallen from the previous estimate of USD 90 billion as a result of asset rationalisation and weaker-than-expected loan growth.
Axis Bank, country’s third largest private bank, on Monday said it will raise Rs 5,000 crore by issuing non-convertible debt securities.
LIC picked up 38 percent shares in this year’s largest equity issuance by State Bank of India on Thursday and the former's stake has increased in the government-owned bank from 8.64 percent to 10.4 percent.
Non-core assets are investments made by banks that are not related to core areas of lending and borrowing, and includes strategic investments in other firms, real estate, holdings in subsidiaries and joint ventures.
The bank plans to issue 6.2 crore shares for Rs 913.24 per share on the issue day as May 11.
The company had set the floor price at Rs 184.45 per share for raising funds through qualified institutional placement (QIP) issue which opened on March 2.
Mid-sized banks are the most at risk of breaching capital triggers, the agency said. A Fitch analysis showed total capital adequacy ratio of 12 banks was at or below the minimum 11.5 percent required by the year to March 2019 to enable coupon payments on both legacy and Basel III additional tier 1 (AT1) capital instruments.
They have been asked to move forward on the idea based on deliberations at the Gyan Sangam last year, sources said.
Asserting that adequate capital will be made available for state-owned banks, Economic Affairs Secretary Shaktikanta Das today said every amount of tax payers' money given would be linked to their performance.
In a report titled 'Progress Will be Slow for India's Banks in 2017', S&P said banks have been able to meet minimum regulatory requirements largely because of the government's capital infusions, their issuance of Additional Tier 1 capital, and lower growth in risk-weighted assets.
The distinction between the government‘s capital and revenue expenditure should be abolished, Fiscal Responsibility and Budget Management (FRBM) review committee head and former revenue secretary NK Singh said.
Finance Minister Arun Jaitley announced an allocation of Rs 10,000 crore for ailing state banks in his Budget speech yesterday. While nimble, bigger lenders will have no complaints, smaller public sectors may not feel the same way.
Global rating agency S&P today said the Budget announcement to infuse Rs 10,000 crore into public sector banks is highly insufficient and the lack of capital may delay the clean-up of their balance sheets.
The review may lead to redefining â€œlong termâ€ for gains capital gains in stocks to be defined as such, even as tax rates are left unchanged. The holding period is likely to be increased.
India's biggest lender by assets, State Bank of India, could tap capital markets next fiscal year to raise up to USD1.5 billion, its chief said on Friday, though it first needs to complete a planned merger with its subsidiary banks.
Encouraging small and medium enterprises (SMEs) to list on its platform, NSE has said listing will help such companies raise capital for their growth and provide visibility.