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Bank of India said it has been growing very diligently and cautiously for the last many years and there is a constant requirement to augment capital.
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State-owned Bank of India (BOI) has convened extraordinary general meeting (EGM) of shareholders next week to seek approval for issuance of equity shares to government for capital infusion of Rs 3,000 crore.
EGM of the shareholders of Bank of India will be held on Wednesday, May 5, 2021 through video conferencing and other audio visual means, the bank said in a regulatory filing.
The board will seek consent of shareholders of the bank to issue and allot up to 42,11,70,854 equity shares for cash at Rs 71.23 per equity share including premium of Rs 61.23 aggregating up to Rs 3,000 crore on preferential basis to government, the bank said in a regulatory filing.
The government in March had sanctioned to infuse the capital in BOI as part of equity during the financial year 2020-21.
Bank of India said it has been growing very diligently and cautiously for the last many years and there is a constant requirement to augment capital.
In order to meet this growing requirement, bank needs long term capital, it added.
The lender said it will utilise the funds to shore up the capital adequacy of the bank and to fund the general business needs of the bank.
After the preferential issue of shares, government's shareholding in bank will go up to 90.34 per cent from 89.10 per cent now.
Stock of the bank closed at Rs 66.35 apiece on the BSE, down 1.63 per cent from the previous close.
(PTI)