BoI board nod for raising funds via QIPs

The board of directors of Bank of India, which met today, approved a proposal to raise tier-I capital by issuing up to 3,77,72,600 equity shares through qualified institutional placements(QIPs) - the first such move by a public sector bank.

The bank will hold an extra ordinary general meeting of the shareholders on January 23, 2008 to approve the proposal.

According to a release issued to the BSE today, "the Bank has got the approval from the ministry of finance for this purpose, which, inter-alia, stipulates that the placements shall be made only with public sector enterprises and mutual funds."

Post issue of shares, the government's holding in the bank is likely to fall from 69.47% to around 64.5%.