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Central Bank of India to raise Rs5,000 crore tier-I capital in FY16

PTI 05 Jun 2015, 8:11:02 IST

New Delhi: State-owned Central Bank of India will raise Rs.5,000-crore tier-I capital this fiscal by way of various modes such as QIP, rights issue and follow-on public offer (FPO).

“...has informed BSE that Capital Raising Committee of the Board of Directors of the Bank at its meeting held on June 04, 2015, inter alia, has approved the proposal to raise Tier-I capital up to Rs.5,000 crore in one or more tranches during Financial year 2015-16,” it said in a BSE filing.

It said the capital will be raised through various modes such as qualified institutional placement (QIP), rights issue, follow-on public offer, private placement, preferential issue subject to approval of government and Reserve Bank of India (RBI), it said.

In January last fiscal, Central Bank of India had said that the lender was in process of raising Rs.660 crore through conversion of perpetual non-cumulative preference shares held by the government into equity shares.

“We are converting our PNCPS into equity which will help us raise around Rs.660 crore,” bank's executive director R.K. Goyal had said. Bank scrips closed at Rs.100.85 apiece on the BSE on Thursday, up 1.05% from previous close.