Syndicate Bank plans to raise Rs 5K cr via securities

State-owned Syndicate Bank today said it will raise Rs 5,000 crore through issuance of equity shares.

The lender also said that post-issuance, the government's stake in the bank will not fall below 51 per cent.

It will seek shareholders' nod for raising the fund at its AGM on June 28.

"...19th Annual General Meeting of shareholders of Syndicate Bank will be held on June 28, 2018 to accord approval for capital issue for an amount not exceeding Rs 5,000 crore by way of Qualified Institutional Placement/Rights Issue/Follow On Public Issue/preferential allotment or any other mode...in one or more tranches..subject to Government of India holding not falling below 51 per cent of the total capital," a BSE filing said.

Earlier in the day, the bank's board approved the proposal to raise equity capital up to Rs 5,000 crore through various modes of securities permitted by the RBI and the Government of India, in one or more tranches.

The board had also approved to raise Basel III compliant additional tier I bonds up to Rs 1,000 crore and tier II bonds up to Rs 1,000 crore at coupon rates as per prevailing market conditions, subject to necessary approvals, during 2018-2019.