Syndicate Bank to raise Rs 217 crore by share sale to LIC

New Delhi: Public sector lender Syndicate Bank will raise over Rs 217 crore by allotting preferential shares to LIC to shore up capital to meet Basel III norms.

"The shareholders of the bank in the extraordinary general meeting approved the issue of 4,13,12,457 equity shares of face value of Rs 10 each for cash at Rs 52.51 aggregating to Rs 216.94 crore to LIC of India on preferential basis", it said in a BSE filing.

In order to comply with Basel III requirements relating to capital adequacy, at the request of the bank, LIC of India has agreed to infuse capital funds to the tune of Rs 216.94 crore by way of preferential allotment of equity in its favour, Syndicate Bank said.

Basel norms basically provide risk templates for banks and amount of capital it is required to keep against lending.

Basel III capital regulation has been implemented from April 1, 2013 in India in phases and it will be fully implemented by March 31, 2019.