 "Bank of India pays dividend of Rs 668 crore to government for FY23")
Bank of India (BOI) on Tuesday paid a dividend of Rs 668 crore for the financial year 2022-23 (FY23) to the government, its majority shareholder. Rajneesh Karnatak, managing director and CEO, and all the four executive directors of the bank presented the dividend cheque to Finance Minister Nirmala Sitharaman.
On May 30, BOI declared a dividend of Rs two per equity share. For 2022-23, BOI’s net profit rose by 18.15 per cent, which went from Rs.3,405 crores in FY22 to Rs 4,023 crores in FY23. The operating profit increased by 34.09 per cent from Rs 9,988 crores in FY22 to Rs 13,393 crores in FY23.
“By successfully paying dividends to the Government of India, Bank of India reaffirms its robust financial performance and unwavering dedication to creating value for its shareholders,” the bank said.
On Tuesday, BOI became the first bank to officially roll out the Mahila Samman Savings Certificate (MSSC) scheme.
Business Standard had reported last month that the Mumbai-based lender said it plans to raise up to Rs 3,000 crore in capital through tier II bonds in the current financial year to support business growth.
BOI has the board’s approval in place to raise up to Rs 6,500 crore in FY24, of which Rs 4,500 crore would be through additional tier-I bonds/equity and balance via tier-II bonds. The tier II bond issuance would be subject to market conditions, bond market sources had said.
Its total capital adequacy ratio (CAR) stood at 16.28 per cent, with tier I of 14.41 per cent and tier II of 1.87 per cent at the end of March 2023. Rating agency CARE has assigned “AA+” rating to the proposed offering of Basel III-compliant tier II bonds. The bank had issued tier II bonds for Rs 1,800 crore in FY22. It redeemed tier II bonds worth Rs 2,500 crore in FY22.