Dena Bank to seek board approval to dilute govt stake

State-owned Dena Bank Tuesday said it will seek board approval on Thursday to dilute government stake up to 52 percent.

New Delhi: State-owned Dena Bank Tuesday said it will seek board approval on Thursday to dilute government stake up to 52 percent.

"To raise equity capital of the bank by diluting government holding up to 52 percent, on obtaining necessary approval from the government," it said in a filing on BSE.

Government shareholding in the bank was 65 percent at the end of September 30.

The meeting of the Board of Directors will be held on December 3, it said.

Last year, the government allowed public sector banks to to bring down its stake up to 52 percent so as to meet capital requirement.

As per law, the government holding at any moment must not come below 51 percent to maintain the public sector character of PSU banks.

Besides, Dena Bank also plans to raise Rs 2,500 crore from various bonds.

The bank will seek nod to raise Additional Tier-1 (AT1) capital up to an amount of Rs 1,500 crore in one or more tranche, in one or more instruments.

In addition, the proposal to raise Tier-2 capital up to an amount of Rs 1,000 crore in one or more tranche will also be considered by the board.

Dena Bank shares closed at Rs 45.45 apiece on BSE today, up 7.83 percent.