New Delhi: Public sector lender IDBI Bank plans to raise Rs 26,000 crore through a mix of equity and bonds to fund its business growth.
The bank proposes to "issue such number of equity shares of the face value of Rs 6,000 crore (inclusive of premium amount) to be added to the existing paid-up capital of IDBI Bank in such a way that the central government shall at all times hold not less than 51 percent of the paid-up capital of the bank...," IDBI Bank said a filing on the BSE.
The fund from sale of shares would be raised in one or more tranches.
Besides, the bank plans to raise Rs 20,000 crore from bonds in one or more tranches during the current fiscal.
Permission has been sought by the bank for "mobilisation of in one or more tranches up to Rs 20,000 crore comprising of senior or infrastructure bonds, Basel III compliant or Additional Tier I Bonds by way of private placement or public issue during 2015-16 or during one year from the date of passing this resolution whichever is later", it added.
The bank would seek nod from shareholders for these proposals during the Annual General Meeting on August 12.
In addition, the bank would also seek approval for increase in the number of whole time directors (Deputy Managing Directors) from two to three.
The board of IDBI Bank has also approved the proposal for separating the post of Chairman and Managing Director into 2 posts of a Chairman and a Managing Director and CEO by effecting amendments in the Articles of Association.
For the full fiscal 2014-15, IDBI Bank had posted a net profit of Rs 873.39 crore, a 22 percent decline over last fiscal.
The bank had a net profit of Rs 1,121.40 crore in 2013-14.
Total income increased to Rs 32,161.62 crore during 2014-15, from Rs 29,576.27 crore in previous fiscal.
On a consolidated basis, the group posted a net profit of Rs 941.80 crore in 2014-15.
The net profit after minority interest and share of profit of associates was Rs 1,151.74 crore in 2013-14 fiscal.
IDBI shares closed at Rs 63.50 apiece on BSE, down 2.46 percent from previous close.