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Vijaya Bank will get a further capital infusion of Rs 368 crore from the Government by the fiscal-end.
The bank has informed the Bombay Stock Exchange that it will hold an Extraordinary General Meeting on March 22, inter alia , to create, offer, issue and allot over 3.9 crore equity shares of the bank of Rs 10 each for cash at a premium of Rs 84 per equity share. The issue price will be Rs 94 a share.
The capital would be in the form of preferential equity, and hence the government's holding in the bank will go up to 57.69 per cent now.
Before the infusion, the Government had about 53.87 per cent stake in Vijaya Bank.
Tier-I capital of the bank, which was at 9.25 per cent as on December 31, 2010, will now be about 10 per cent, Mr Albert Tauro, Chairman and Managing Director, Vijaya Bank, told Business Line . “With this tier-I infusion, the bank will not be in a need to raise tier-I funds for the next two years,” he said.
As the bank's tier-II capital is already at 4.4 per cent and with this additional capital now, “we should have a tier-II headroom of about Rs 3,000 crore,” he added.
“Though the bank could raise tier-II in the future, there is no pressing need to raise funds till 2012,” said Mr Tauro.
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