Vijaya Bank to raise Rs1,000 crore to fund business, store for Basel
New Delhi: State owned Vijaya Bank will raise Rs1,000 crore within a year to create buffer as per global capital adequacy norms, Basel III, and to fund business expansion.
The board of directors of the bank will put up the matter before shareholders at the annual general meeting (AGM) on 23 June. Consent will be sought from shareholders to create, offer and issue equity shares to qualified institutional buyers (QIP) through one or more placements, Vijaya Bank said in a regulatory filing.
“The bank proposes for issue of up to Rs1,000 crore equity capital on preferential/QIP basis at a price of to be determined,” it said. The money, the lender said can also be raised by ways such as rights issue or follow-on public offer. “In order to meet the growing capital requirement of funds in terms of Basel III capital regulation and consequent capital charge and for general lending purposes, the bank proposes to raise funds,” it said.
The bank will also declare dividend for 2016-17. The board of the bank has recommended a dividend of Rs1.5 per share (0.15%) for the last fiscal. Vijaya Bank stock closed 1.33% up at Rs79.75 on BSE. PTI