Indian Bank to raise additional Rs 5,000 crore, shares grow above 0.7%
The bond issuance will occur in one or more tranches during the current or subsequent financial years, following Reserve Bank of India (RBI) guidelines and other relevant regulations.
Indian Bank to raise additional Rs 5,000 crore, shares grow above 0.7%
New Delhi: State-owned PSB Indian Bank said its board of directors has approved raising an additional Rs 5,000 crore through long-term infrastructure bonds in a board meeting ceremony.
The new bond issue will be over and above the Rs 5,000 crore already raised in the current financial year 2024-25. The funds are intended for financing and refinancing infrastructure and affordable housing projects.
The bond issuance will occur in one or more tranches during the current or subsequent financial years, following Reserve Bank of India (RBI) guidelines and other relevant regulations.
Read Also : NHPC makes Joint Venture Agreement with APGENCOIn May this year, the Indian Bank approved a fundraising plan worth up to Rs 12,000 crore through various methods.
First, the bank plans to raise equity capital worth to Rs 5,000 crore through various modes like QIP, FPO, a rights issue, or in combinations thereof. This will be subject to approval from the central government, which owns a 73.84% stake in the lender, and the Reserve Bank of India.
Alongside, the bank will also raise additional tier-1 or tier-2 capital worth up to ?2,000 crore through the issue of Basel-III compliant AT-1 perpetual bonds or tier-2 bonds in one or more tranches in the current or subsequent financial years, subject to requirement.
Read Also : BPCL shares surges over 7%, with record heavy trading volumesAdditionally, the board has approved raising long-term infrastructure bonds worth up to Rs 5,000 crore in one or more tranches during the current or subsequent financial years, based on the requirement for financing/refinancing of infrastructure and affordable housing. The timeline for raising these funds has not been disclosed.
Shares of Indian Bank ended at Rs 529.80, up by Rs 3.90, or 0.74%, on the BSE.
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