Tuesday, Oct 20, 2020 | Last Update : 12:15 PM IST

195th Day Of Lockdown

Maharashtra1443409114960338084 Andhra Pradesh7192566588755981 Karnataka6406615157829286 Tamil Nadu6088555529389653 Uttar Pradesh4031013468595864 Delhi2827522506135401 West Bengal2603242287555017 Odisha222734190080912 Kerala204242131048772 Telangana1992761701091163 Bihar178882164537888 Assam169985139977655 Gujarat1332191132403417 Rajasthan1288591077181441 Haryana1237821059901307 Madhya Pradesh117588932382207 Punjab107096840253134 Chhatisgarh9856566860777 Jharkhand7770964515661 Jammu and Kashmir69832495571105 Uttarakhand4533233642555 Goa3107125071386 Puducherry2548919781494 Tripura2412717464262 Himachal Pradesh136799526152 Chandigarh112128677145 Manipur9791760263 Arunachal Pradesh8649623014 Nagaland5768469311 Meghalaya5158334343 Sikkim2707199431 Mizoram178612880
  Business   Companies  06 Aug 2017  12 PSU bank plan to raise funds from markets to meet Basel III norms

12 PSU bank plan to raise funds from markets to meet Basel III norms

PTI
Published : Aug 6, 2017, 4:30 pm IST
Updated : Aug 6, 2017, 4:30 pm IST

Public sector banks need to raise Rs 1.10 triillion from markets, including follow-on public offer, to meet Basel III requirements.

12 public sector banks including PNB, Bank of India and Indian Bank have lined up plans for raising funds from markets.
 12 public sector banks including PNB, Bank of India and Indian Bank have lined up plans for raising funds from markets.

New Delhi: As many as 12 public sector banks including PNB, Bank of India and Indian Bank have lined up plans for raising funds from markets to shore up their capital base to meet global risk norm, Basel III.

About 6-7 lenders including Andhra Bank expect to close their capital raising plan by the end of the current fiscal, officials said.

 

The remaining would raise funds through follow-on-public offer (FPO) or qualified institutional placement (QIP) from the market during course of the next fiscal, they added.

Lenders including Allahabad Bank, Andhra Bank, Bank of India, Central Bank of India, Dena Bank, IDBI Bank, Indian Bank and Punjab National Bank (PNB) have already got permission from the government to raise capital from the market through QIP or FPO or preferential allotment.

Similarly, Syndicate Bank, UCO Bank, United Bank of India, Vijaya Bank also got approval from the government and some of them have already started the process.

For example, Allahabad Bank has already obtained shareholders’ nod in order to raise equity capital aggregating up to Rs2,000 crore through different modes like QIP, FPO or a rights issue. Board of PNB has given its approval for raising equity capital to the tune of Rs3,000 crore through FPO, QIP or rights issue.

 

At the same time, Dena Bank also obtained shareholders’ nod to offer equity shares aggregating up to Rs1,800 crore to QIP at such issue prices including premium with face value of Rs10 each.

As per the Indradhanush roadmap, public sector banks need to raise Rs1.10 triillion from markets, including follow-on public offer, to meet Basel III requirements, which kick in from March 2019. This will be over and above the Rs70,000 crore that banks will get as capital support from the government.

Of this, the government has already infused Rs50,000 crore in the past two fiscals and the remaining will be pumped in by the end of 2018-19.

In June, SBI raised Rs15,000 crore by selling 52.2 crore shares through QIP, the largest share sale in the secondary market by a bank.

 

SBI said the total proceeds of the issue will be used to augment its capital adequacy ratio and for general corporate purposes.

Tags: fund raising, public sector banks, basel iii
Location: India, Maharashtra, Mumbai (Bombay)