Bank of India to raise up to Rs 2,776 cr

State-owned Bank of India (BoI) today said it would issue 70 million fresh equity shares on preferential basis to to the government of India and Life Insurance Corporation of India (LIC).

At the prevailing share price, the bank would raise Rs 2,776.20 crore.

The board has approved the raising of capital by issue of up to 70 million fresh equity shares to government of India and LIC or to any other investors, as permitted on preferential basis, BoI said in a filing on the Bombay Stock Exchange (BSE).

Shares of the bank closed at Rs 396.60 a piece, up 4.27% on the BSE.

The fund raising would be subject to the approval of the shareholders and regulatory authorities, it said.

Further, it is also decided to convene an Extra Ordinary General Meeting of the shareholders on March 24, 2012 to take their approval, it said.

Last fiscal, the bank got capital support of Rs 1,010 crore from the government.

In 2010-11, the government provided capital support to the tune of Rs 20,157 crore to public sector banks.

Most of the public sector banks got capital support from the government last fiscal. These banks included Bank of Baroda, Union Bank of India, Oriental Bank of Commerce, UCO Bank and Dena Bank.