Oriental Bank shareholders to consider issuing 5 crore shares under ESPS

The shareholders of Oriental Bank of Commerce (OBC) will consider next month a proposal to issue up to 5 crore shares under the employee stock purchase scheme.

An extraordinary general meeting of the shareholders will be held on December 21, 2018, the bank said in a regulatory filing Monday.

The shareholders will consider allotment of up to 5 crore new equity shares under Employee Stock Purchase Scheme (ESPS) in one or more tranches, at such prices, terms and conditions as may be decided by board/committee, the bank said.

Such shares will be locked in for a minimum period of one year from the date of allotment, the state-owned lender said.

In March, the government allowed public sector banks to offer stock options to their employees in order to retain experienced hands. The scheme also aims at providing better incentives besides being a means of capital raise.

Allahabad Bank has raised nearly Rs 236 crore in its maiden ESPS.

United Bank completed the issue of around 5 crore fresh shares to employees under the scheme on August 31, 2018.

PNB will offer 10 crore shares under the scheme while Canara Bank will issue up to 6 crore equity shares to its staff to raise up to Rs 1,000 crore under ESPS.

Stock of OBC closed 1.32 per cent down at Rs 88.45 on BSE.