IDBI Bank to raise Rs 11,000 crore, gets shareholders’ nod

IDBI BANK

IDBI Bank has announced the fundraise Rs 11,000 crore by issuing shares through various modes after receiving the go-ahead from the shareholders.

IDBI BANK

The decision pertaining to the raise was finalized during the bank’s annual general meeting held on August 17, 2020, through videoconferencing.

The AGM (represented by shareholders) helped in finalizing the resolution for issue of shares aggregating up to Rs 11,000 crore (inclusive of premium amount) via various modes of issue, such as QIP (qualified institutions placement), said the LIC-backed private sector lender in a regulatory filing.

Among other resolutions cleared at the AGM were re-appointment of Rajesh Kandwal as a rotational director, as a nominee of LIC, who gave his name for re-appointment, said IDBI Bank.

Further, the shareholders okayed the appointment of Meera Swarup and Anshuman Sharma as rotational directors during their tenure as government nominee directors on the board, it added.

Also Read: IDBI Bank slashes lending rates by 5 bps

As on June 30, 2020, LIC held 51 percent share in IDBI Bank, while the government shareholding was at 47.11 percent, as per the data on BSE.

Originally a public sector lender, IDBI Bank was converted into a private-sector firm post-acquisition of 51 percent stake in it by LIC in January 2019.

Insurance giant LIC is 100 percent government-owned.

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