The Bank of India (BOI) approved an increase in total capital for FY24 that might exceed 6,500 crore rupees on Tuesday.
According to a stock exchange filing, the bank plans to raise a total of Rs 4,500 crore, of which Rs 2,000 crore would be in the form of equity capital.
This is to tell you that the Bank’s Board of Directors, at their meeting on April 18, 2023, among other things, discussed and authorised the raising of capital for the fiscal year 2023–24 in the following manner: This is to inform you that the bank has been granted permission to raise capital for the fiscal year 2023–24 in accordance with Regulation 30 of the SEBI (LODR) Regulations, 2015, read in conjunction with Schedule III, Part A. a. via the issuance of new equity capital in the form of a follow-on public offering (FPO), qualified institutional placement (QIP), rights offering (Rights Issue), or preferential offering; and/or via the issuance of Basel III-compliant Additional Tier-1 bonds. b. issuing Basel III-compliant Tier-2 bonds for a maximum of 2,000 billion rupees.
BOI has a capital adequacy ratio of 15.6%, with 12.77% common equity tier-1 capital, including a capital conversation buffer. BOI has about 5,000 branches spread throughout India. The bank’s loan volume increased by 16.08 percent year on year up to the 31st of December.
BoI raised Rs 1,500 crore in capital during the third quarter of the previous fiscal year by selling additional tier-1 notes.