IDBI Bank approaches shareholders to raise capital

698

idbi_bank_logo2In order to raise Rs 8,000 crore through an equity offer, IDBI Bank has sought requisite approval from shareholders, the lender said in an exchange filing recently.

In the filing, IDBI bank said that it would assess all ways including qualified institutional placement (QIP), preference share issue, rights issue or follow-on public issue to generate funds.

The bank has also sought approval to raise up to Rs 20,000 crore of capital through issuance of debt instruments in one or more tranches during fiscal 2017. It may issue Tier-I bonds, Tier-II bonds or infrastructure bonds either privately or through a public offer, the filing stated.

IDBI Bank’s capital adequacy has plummeted to 11.67 per cent as of 31 March from 13 per cent a year ago owing to a surge in bad loans and provisioning. Much of the rise in non-performing assets and provisions has been in the last two quarters following the Reserve Bank of India’s asset quality review.

Get a chance to meet the Who's who of the BFSI industry. Join 3rd NBFC100 Tech Summit, New Delhi on 27th April and explore business opportunities. Like us on Facebook, connect with us on LinkedIn and follow us on Twitter, Instagram & Pinterest.