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IDBI Bank to raise up to Rs 5,000 crore

Read more about IDBI Bank to raise up to Rs 5,000 crore on Business Standard. The bank will put the proposal for raising equity capital before shareholders at its AGM on July 18

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IDBI Bank to raise up to Rs 5,000 crore

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  1. IDBI Bank to raise up to Rs 5,000 crore Mumbai-based public sector lender IDBI Bank is seeking shareholders’ nod to raise equity capital of up to Rs 5,000 crore through various routes, including qualified institutional placement (QIP), to meet capital adequacy norms. In addition, the ailing bank will tap market to raise up to Rs 5,000 crore through infrastructure bonds and basel-III-compliant additional tier-I and tier-II bonds. The bank will put the proposal for raising equity capital before shareholders at its annual general meeting (AGM) on July 18. The special resolution passed at the last AGM (held on July 22, 2016) for raising capital through QIP, is valid only for one year, till July 21, 2017. As for debt (bonds) issuance, the proposal will be valid for one year from the date of passage of proposal. The bank, which has been struggling with losses for the past two years, is under the corrective action plan (CAP). In the year ended March 31, the bank posted a net loss of Rs 5,158 crore, as against a net loss Rs 3,665

  2. crore in the previous financial year. The capital adequacy ratio was 10.70 per cent, with tier-I of 5.64 per cent. Its capital conservation buffer (CCB) stood at 0.14 per cent against regulatory requirement of 1.25 per cent. IDBI is discussion with the government for a turnaround plan, which entails milestone and commitment from the bank in areas like cost control, reorganisation of structure and improving financial profile. The government has a 73.98 per cent stake in IDBI Bank as on March. More News: Financial News Latest Financial News Financial News India Financial News Today Current Financial News

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