IDBI to raise Rs 3k cr via QIBs, preference shares to govt
State-owned IDBI Bank Friday said it proposes to raise Rs 555 crore by issuing preference shares to the government, and up to Rs 2,500 crore from institutional investors.
New Delhi: State-owned IDBI Bank Friday said it proposes to raise Rs 555 crore by issuing preference shares to the government, and up to Rs 2,500 crore from institutional investors.
The board has approved the proposal for preferential issue of equity capital aggregating Rs 555 crore - including premium - to the government, IDBI Bank said in a filing on the BSE.
Last fiscal, the government infused Rs 810 crore in the bank by way of preferential allotment of shares.
The bank said the board has also cleared raising capital up to Rs 2,500 crore by offering shares to Qualified Institutional Bidders (QIBs).
This is subject to regulatory and shareholder approvals, it added.
Earlier this month, the government approved infusion of Rs 12,517 crore in around 10 state-owned banks over the next three months.
"Pursuant to the Budget announcement made by the Finance Minister on March 16, 2012, we are infusing additional capital into the public sector banks. We will infuse before the end of this fiscal year a sum of Rs 12,517 crore," Finance Minister P Chidambaram had said.
"We think about 9-10 banks will get the money...This will enable the banks to maintain the Tier I CRAR (capital to risk-weighted assets ratio) at a comfortable level and will be compliant to stricter capital adequacy norms of Basel III whenever Basel III is implemented," he had said.
The government infused about Rs 20,117 crore in public sector banks during 2010-11, and Rs 12,000 crore in 2011-12.