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Central Bank to raise Rs 200 cr via staff stock purchase plan

Press Trust of India  |  New Delhi 

State-owned of India Friday said it will raise about Rs 200 crore by issuing shares to staff under the employee purchase scheme.

The board of directors of the at their meeting held on December 28, 2018 approved the proposal to raise capital by issuance of shares to employees through Employee Purchase Scheme (ESPS) to the extent of approximately Rs 200 crore, the lender said in a regulatory filing.

The will decide all operative steps, including convening of extra-ordinary general meeting of shareholders to pass the resolution and determination of pricing methodology and discount, Central said.

Last week, had informed about raising up to Rs 500 crore by issuing 30 crore shares to its staff under the employee purchase scheme.

said it has mobilised Rs 500 crore through ESPS.

The government in March 2017, had allowed to offer stock options to their employees, aimed at retaining experienced hands and better incentives besides a means for raising capital.

A number of public sector banks, including Allahabad Bank, Union Bank, and Canara Bank, have availed the new scheme to raise funds by issuing shares to their staff.

Shares of closed 0.96 per cent down at Rs 36.05 apiece on BSE.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, December 28 2018. 17:46 IST