On Tuesday, the Bank of India (BOI) gave its approval for an increase in total capital for FY24 that may reach up to 6,500 crore rupees.
According to a statement with the stock market, the bank intends to raise a total of Rs 4,500 crore, of which Rs 2,000 crore would be in the form of equity capital.
This is to inform you that the Board of Directors of the Bank at their meeting held on 18th April 2023, among other things considered and approved the raising of capital for the FY 2023-24 aggregating up to Rs.6,500 crores in the following manner: In accordance with Regulation 30 of the SEBI (LODR) Regulations, 2015 read in conjunction with Schedule III, Part A, this is to inform you that the Bank has been granted permission to raise capital for the FY 2023-24. a. via the issuance of new equity capital in the form of a follow-on public offering (FPO), qualified institutional placement (QIP), rights offering (Rights Issue), or preferential offering; and/or via the issuance of Basel III compliant Additional Tier-1 (AT-1) bonds (in domestic and foreign currency) up to a value of Rs.4,500 crores. b. Through the issuance of Basel III-compliant Tier-2 bonds for a maximum sum of 2,000 billion rupees.
BOI has a capital adequacy ratio of 15.6 percent, with a common equity tier-1 capital of 12.77%, including a capital conversation buffer. BOI has nearly 5,000 branches throughout India. Up to the 31st of December, the bank recorded a solid rise in the amount of credit of 16.08 percent annually.
During the third quarter of the last fiscal year, BoI raised a total of Rs 1,500 crore in the capital by issuing extra tier-1 bonds.
