Boi Maiden Issue Opens On February 21

Bank of India, with a net profit of Rs 276.48 crore during 1995-96, the highest among the nationalised banks, is entering the capital market with its maiden public issue on February 21.

Chairman and managing director of the bank G Kathuria said that in a scenario of deregulation we need long-term funds in order to maintain the capital adequacy, which is at present ruling at about nine per cent.

At present, the banks share capital stands at Rs 582.47 crore, giving it an EPS of Rs 4.75, Kathuria told newspersons yesterday. However, the bank has recently entered into an agreement with the Union government to return Rs 93.47 crore from its share capital, which will leave it with a total pre-issue capital of Rs 489 crore, Kathuria said adding that we have further requested the government to convert additional Rs 200 crore capital into preference capital.