Bank of India board approves up to Rs 6,500 crore fundraising plan

Strap: The bank will raise Rs 4,500 crore as equity capital and Rs 2,000 crore via bonds

State-run lender Bank of India (BoI) on Tuesday approved raising of total capital for FY24 aggregating up to Rs 6,500 crore.

The bank will raise Rs 4,500 crore as equity capital and Rs 2,000 crore via bonds, the lender said in a stock exchange filing.

Pursuant to Regulation 30 of Sebi (LODR) Regulations, 2015 read with Schedule III, Part A, this is to inform that the Board of Directors of the Bank at their meeting held on 18th April, 2023, inter-alia considered and approved the raising of capital for the FY 2023-24 aggregating upto Rs 6,500 crore in the following manner: By issue of fresh Equity Capital in the form of FPO / QIP / Rights Issue / Preferential Issue and / or Basel III compliant Additional Tier-1 (AT-1) bonds (domestic and foreign currency) upto an amount of Rs 4,500 crore; and by issue of Basel III compliant Tier-2 bonds upto an amount of Rs 2,000 crore.

Earlier, BoI, which has over 5,000 branches across the country, had a capital adequacy ratio of 15.6 per cent, with common equity tier-1 capital of 12.77 per cent, including capital conservation buffer. Till December 31, the bank reported a robust credit growth of 16.08 per cent year on year.

BoI had raised Rs 1,500 crore capital through additional tier-1 bonds in the third quarter of the previous financial year.