PSU lender Indian Bank on Tuesday said it has received approval to raise capital up to ₹4,000 crore.

The committee of directors for capital raising, at its meeting held on Tuesday, accorded approval for raising of equity capital of the bank aggregating up to ₹4,000 crore (including premium) through Qualified Institutions Placement (QIP) in one or more tranches subject to all statutory and regulatory approvals, the banks said in a filing to stock exchanges.

The government of India held a 79.86 per cent stake in the bank as on June 30, 2023.

Capital Adequacy Ratio for the bank stood at 15.8 per cent in the June 2023 quarter, while the CET1 ratio was at 12.3 per cent.