Board approves raising funds via shares, bonds

Modifying its earlier resolutions, the board of directors of Indian Bank approved a proposal to raise ₹7,000 crore by issuing equity shares to employees and through AT1 bonds and Tier-2 bonds. The board decided to issue and allot four crore equity shares of ₹10 each up to ₹800 crore (including premium) to the permanent employees.

The shares are to be issued in one or more tranches with a maximum of 2,000 shares per employee, under the Indian Bank Employees Share Purchase Scheme, up to March 2021, said the bank.

The board also approved raising Basel III-compliant AT1 bonds up to ₹2,200 crore and Tier 2 bonds up to ₹1,100 crore in one or more tranches during 2019-20 based on requirement.

In a resolution passed on December 19, 2017, the board approved raising up to ₹7,000 crore by way of equity shares. The share issue was to be made, based on requirement, through various means such as follow-on public offer, private placement, qualified institutional placement and rights or preferential issue subject to shareholder and regulatory approvals.