Indian Bank to hold EGM to get shareholders' approval for proposed allotment of equity shares to Govt

The Central government will be making a cash infusion of Rs 280 cr into the bank

Indian Bank today informed BSE that the Board will hold an EGM of the shareholders of the Bank on March 23 for obtaining their approval for the proposed preferential issue of equity shares amounting to Rs 280 crore to the Government of India.

The paid-up capital of the bank consists of 46,48,48,488 equity shares of Rs 10 each amounting to Rs 464.85 crore. Of these, the Government of India's holding is 37,88,98,488 equity shares of Rs 10 each amounting to Rs 378.90 crore or 81.51 per cent of the paid-up capital.

Based on the bank's performance, the government has decided to infuse fresh capital to the tune of Rs 280 crore into the bank. The proposed preferntial issue of equity to the government will be considered for the Tier I capital, which will improved the CRAR to take care of the future business expansion and other requirements stipulated by the Regulator, the lender stated.