OBC to allot up to 5 cr new shares to staff under ESPS

State-owned Oriental Bank of Commerce will issue up to 5 crore new equity shares to its employees under the employee stock purchase scheme (ESPS).

The bank received the approval of shareholders at its extra-ordinary general meeting held Friday, it said in a regulatory filing.

The remote e-voting held for the resolution approved with majority "to create, offer and issue up to 5 crore new equity shares...under employee stock purchase scheme (OBC-ESPS) in one or more tranches," it said.

The bank said the price has to be decided by the board/committee for the equity share allotment to employees.

The government in March 2017 allowed public sector banks to offer stock options to their employees, aimed at retaining experienced hands and better incentives besides a means for raising capital.

A number of public sector banks, including Allahabad Bank, Union Bank, United Bank of India and Canara Bank, have availed the new scheme to raise funds by issuing shares to their staff.

Syndicate Bank Thursday informed about raising Rs 500 crore through its ESPS by allotting 30 crore new shares to its staff.

Earlier on December 13, Punjab National Bank (PNB) said it had mobilised Rs 500 crore through ESPS by issuing 10 crore shares to its employees.

Shares of Oriental Bank of Commerce closed 0.53 per cent down at Rs 93.15 apiece on BSE.