Syndicate Bank is planning to raise up to Rs 2,000 crore by issuing equity shares through qualified institutional placement (QIP), rights issue, follow on public issue (FPO) or any other mode approved by the government and RBI, the company said in a BSE filing.
Funds may be raised in one or more tranches, the bank said. Syndicate Bank is also planning to raise up to R1,800 crore through Basel-III compliant additional tier-I bonds, the statement said, adding the bank plans to raise up to R1,750 crore through tier-II bonds at coupon rates as per prevailing market conditions. The bank is holding the annual general meeting of its shareholders on June 26.
“To cater to its increasingly growing business level in the continually changing business scenario and to comply with the Basel-III norms, the bank needs additional capital immediately,” the statement said.
As per the Basel-III capital guidelines, minimum CRAR is to be maintained at 9% by banks which has to be progressively increased to 11.50% including the capital conservation buffer (CCB) from the year 2016 onwards.
Syndicate Bank had posted a 2% rise in its fourth quarter net profit while reporting a capital adequacy ratio of 10.54%.
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