Indian Bk okays conversion of Rs 400cr pref shares into equity

The shareholders of public sector Indian Bank have unanimously approved the conversion of Rs 400 crore Perpetual Non-Cumulative Preference Shares into equity increasing the stake of Government of India in the bank.
At the extra-ordinary general meeting held today, the shareholders of the city-based public sector bank, have "unanimously" approved conversion of Rs 400 crore PNCPS into equity by issuance and allotment of 3.51 crore equity shares of Rs 10 each at a conversion price of Rs 114.03.
"With this the Government of India holding in the bank will go upto 81.51 per cent from the pre-existing level of 80 per cent," Indian Bank Chairman and Managing Director T M Bhasin said in a statement.

Noting that the bank was well capitalised, Bhasin said the conversion of PNCPS into equity would further strengthen the common equity tier I capital to 10.39 per cent.
The net worth of the bank stands at Rs 11,726.50 crore and if the plough back of profits for three quarters of current financial year was considered, the CET-I is 10.89 per cent, he said.