You are here: Home » Finance » News » Others
Business Standard

Bank of India to raise up to Rs 13,000 crore

BS Reporter  |  Mumbai 

Public sector Bank of India (BoI) plans to raise up to Rs 13,006 crore through a mix of instruments such as innovative perpetual debt, preference shares and Tier-II bonds to shore up capital adequacy ratio (CAR).

The bank’s board has approved the proposal to raise funds, which is enabling provisions. The bank will raise capital based on credit growth and market conditions, said BoI Chief Financial Officer V K R Agarwal. The bank has a headroom to raise up to Rs 6,300 crore via Tier-I bonds and Rs 6,700 crore via Tier-II bonds. Its CAR stood at 13.01 per cent at the end of March 2009, up from 12.01 per cent a year ago.
 

HOW THE BANK FARES
Performance data
(Rs crore)

Year ended March

2008 2009 % chg
Deposits 150,012 189,708 26.46
Advances 113,476 142,909 25.94
Total Assets 178,830 225,502 26.10
Total Income 14,472 19,399 34.05
Net Profit 2,009 3,007 49.66
Net NPA To Net Adv (%) 0.52 0.44  

Agarwal said the Mumbai-based public sector lender would like to maintain the 13 per cent CAR all along. Besides its balance sheet, the bank has to factor in capital requirements of overseas subsidiaries and ventures such as life insurance company Star Union Dai Ichi where it holds 51 per cent stake.

There is no redemption of Tier-II or any other capital in 2009-10. With 20 per cent projected growth in credit, the lender expects to add advances worth Rs 30,000 crore in 2009-10. Its gross advances stood at Rs 1, 44,731 crore at the end of March 2009. Total business is expected to touch Rs 4,00,000 crore by the end of the current financial year.

The scrip of BoI On Wednesday closed at Rs 346.4, up 1.12 per cent over its previous close of Rs 342.55 on the Bombay Stock Exchange.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Thu, June 25 2009. 00:21 IST
RECOMMENDED FOR YOU
.