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Indian Bank has said that its share holders has approved conversion of Rs 400 crore worth Perpetual Non Cumulative Preference Shares (PNCPS) into equity by issuance and allotment of 3.51 crore shares of Rs 10 each at a conversion price of Rs 114.03 crore to the Government of India.
The share holding of Government of India in the Bank would go up from current 80% to 81.51% with this, said T M Bhasin, CMD, Indian Bank. He added that the Bank is well capitalized and the conversion of PNCPS into Equity will further strengthen the Common Equity Tier (CET) I Capital to 10.39%.
The Net worth of the Bank stands at Rs 11,726.50 crore and if the plough back of profits for three quarters of current financial year is considered, the CET-I is 10.89% and overall Capital to Risk Assets Ratio (CRAR) is 13.38% as on date.
The public sector bank has not requested for capital infusion for the past five years and has been generating and ploughing back enough profits to take care of credit growth, added the Bank officials.
