The Bank of India's board of directors has approved a plan to raise up to Rs 6,500 crore in funding in fiscal 2024.
According to an exchange filing issued on Tuesday, the public sector bank will raise up to Rs 4,500 crore via fresh equity capital in the form of a follow-on public offer, qualified institutional placement, rights issue, preferential issue, and/or additional tier-1 bonds. Up to Rs 2,500 crore will be raised by the issuance of tier-2 bonds, it said.
Bank of India's fundraising approval comes on the heels of the State Bank of India planning to raise up to $2 billion in long-term funding in fiscal 2024.
India's largest lender will raise the funds via a public offer and/or private placement of senior unsecured notes denominated in U.S. dollars or other convertible foreign currencies, according to an exchange filing.
The Bank of India will also seek shareholder approval for the fundraising plans in its next annual general meeting or extraordinary general meeting, the filing said.
Bank of India's stock closed 0.81% higher for the day, with shares changing hands for Rs 80.60 apiece as compared with a flat benchmark Nifty Bank index.
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