Indian Bank shareholders approve preferential issue

Government-owned mortgage lender Indian Bank on Monday got the shareholders' approval to raise Rs.280 crore on preferential basis from the central government.

In a statement, the bank said at an extra-ordinary general meeting of shareholders held here on Monday, the shareholders gave their nod to issue 1.54 crore equity shares of Rs.10 each at a premium of Rs.171.41 to the central government on preferential basis.

"The issue is pursuant to the decision of the government of India to infuse capital funds to the tune of Rs.280 crore in the bank by way of preferential allotment of equity in favour of the government of India," the statement said.

Following the issue, the holding of the government of India will increase to 39.43 crore equity shares, representing 82.10 percent of the bank's paid-up capital against the present level of 81.51 percent.