Indian Bank gets board approval to raise Rs 4,000 cr from share sale

The bank looks to enhance its capital base

State-owned Indian Bank on Friday said the board has approved a proposal to raise up to Rs 4,000 crore from share sale to enhance capital base.

The board has approved "raising equity capital aggregating up to Rs 4,000 crore through Qualified Institutions Placements (QIPs)/Follow on Public Offer (FPO)/ Rights Issue or in combination thereof subject to approval of Government of India, Reserve Bank of India," the bank said in a regulatory filing.

Besides, the board has also given approval for raising another Rs 3,000 crore through bonds.

The filing further said the board approved "raising AT 1/Tier 2 Capital aggregating up to Rs 3,000 crore through issuance of Basel III Compliant AT1/Tier 2 Bonds in one or more tranches during the current or subsequent financial years based on the requirement".

Meanwhile, the Chennai-based bank reported more than doubling of its profit at Rs 514.28 crore for the third quarter ended December 2020 as against Rs 247.16 crore in the same quarter a year ago.

Total income during the quarter under review was Rs 11,421.34 crore, up from Rs 6,505.62 crore in the same period a year ago.