Money & Banking

Syndicate Bank gets shareholders' nod for ₹460-cr capital infusion by Govt

A J Vinayak Manipal | Updated on March 24, 2015 Published on March 24, 2015

The extraordinary general meeting (EGM) of shareholders of Syndicate Bank has approved the allotment of 3,74,74,541 equity shares for cash aggregating ₹460 crore on a preferential basis to the Government of India.

Addressing presspersons after the EGM at Manipal on Tuesday, TK Srivastava, Executive Director of the bank, said that to comply with the Basel-III requirements relating to capital adequacy the Government of India has decided to infuse ₹460 crore throught preferential allotment of equity in its favour.

“We are hopeful that we will get ₹460 crore by the end of this month,” he said.

Apart from this tier-1 capital of ₹460 crore, the bank has got approval for raising another ₹1,000 crore of tier-1 capital. Syndicate Bank management will decide on the mode of mobilising that capital, he said.

Stating that Syndicate Bank has got approval for raising tier-2 capital of ₹1,150 crore, Srivastava said ₹750 crore of the amount was mobilised in September, and another ₹400 crore was mobilised two days ago through an issue of bonds. That the bank got at a coupon rate of 8.75 per cent, he said.

Under the Basel-III requirements, the bank will require capital funds of ₹3,500 crore in the next three years.

Ravi Shanker Pandey, Executive Director of the bank, was present on the occasion.

Published on March 24, 2015
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