New Delhi: Public sector IDBI Bank on Wednesday said it proposes to raise 20,000 crore through bond issuance from domestic market next fiscal.

The board has approved “the proposal for Rupee bond issuance limit of 20,000 crore to be borrowed in one or more tranches comprising of senior or infrastructure bonds, Basel III compliant Tier II or additional Tier 1 Bonds by way of private placement or public issue during 2015-16...," IDBI Bank said in a filing in the Bombay Stock Exchange (BSE). It would be “subject to Government of India’s approval and compliance with all applicable laws, regulations and guidelines as well as the approval of shareholders...," it said.

Shares of IDBI Bank closed at 78.05 per unit, down 4.76% on the BSE. Besides, the board has also approved in-principle the proposal for increase in the number of whole time directors (deputy managing directors) from two to three. It is subject to government of India’s approval and all other statutory or regulatory approvals to be taken in this regard, it said. The board of the IDBI Bank has also approved the proposal for separating the post of chairman and managing director into two posts of a chairman and a managing director and chief executive officer by effecting amendments in the Articles of Association. The board has also appointed N.S. Venkatesh, executive director as chief financial officer of the bank in place of P. Sitaram.

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