IDBI Bank gets shareholders’ nod to raise Rs 11,000 cr

Originally a public sector lender, IDBI Bank became a private sector firm post-acquisition of 51 per cent stake in it by LIC in January 2019.

IDBI Bank on Tuesday said it has received shareholders’ approval to raise up to Rs 11,000 crore by issuing shares through various modes.

The decision was taken at the bank’s annual general meeting that took place on August 17, 2020, through audio-visual means.

The AGM (represented by shareholders) enabled the resolution for issue of shares aggregating up to Rs 11,000 crore (inclusive of premium amount) through various modes of issue, including QIP (qualified institutions placement), said the LIC-backed private sector lender in a regulatory filing.

Among other resolutions passed at the AGM were re-appointment of Rajesh Kandwal as rotational director as a nominee of LIC, who offered himself for re-appointment, IDBI Bank said.

Besides, the shareholders gave nod to appoint Meera Swarup and Anshuman Sharma as rotational directors during their tenure as government nominee directors on the board, it added.

LIC held 51 per cent share in IDBI Bank as on June 30, 2020, while the government shareholding stood at 47.11 per cent, as per the data on BSE.

Originally a public sector lender, IDBI Bank became a private sector firm post-acquisition of 51 per cent stake in it by LIC in January 2019.

Insurance behemoth LIC is 100 per cent government-owned.

IDBI Bank said the MD & CEO replied to queries raised by shareholders on various issues during the AGM, provided clarifications and also noted the suggestions given by them.

Shares of IDBI Bank closed 2.07 per cent up at Rs 39.40 apiece on the BSE.