Money & Banking

Central Bank to raise Rs 200 cr via staff stock purchase plan

PTI New Delhi | Updated on December 28, 2018 Published on December 28, 2018

The government in 2017, had allowed public sector banks to offer stock options to their employees, aimed at retaining experienced hands and better incentives besides a means for raising capital

State-owned Central Bank of India on Friday said it will raise about Rs 200 crore by issuing shares to staff under the employee stock purchase scheme.

The board of directors of the bank at their meeting held on December 28, 2018 approved the proposal to raise capital by issuance of shares to employees through Employee Stock Purchase Scheme (ESPS) to the extent of approximately Rs 200 crore, the lender said in a regulatory filing.

The Committee of Directors will decide all operative steps, including convening of extra-ordinary general meeting of shareholders to pass the resolution and determination of pricing methodology and discount, Central Bank said.

Last week, Syndicate Bank had informed about raising up to Rs 500 crore by issuing 30 crore shares to its staff under the employee stock purchase scheme.

Punjab National Bank said it has mobilised Rs 500 crore through ESPS.

The government in March 2017, had allowed public sector banks to offer stock options to their employees, aimed at retaining experienced hands and better incentives besides a means for raising capital.

A number of public sector banks, including Allahabad Bank, Union Bank, United Bank of India and Canara Bank, have availed the new scheme to raise funds by issuing shares to their staff.

Shares of Central Bank of India closed 0.96 per cent down at Rs 36.05 apiece on BSE.

Published on December 28, 2018
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