Syndicate Bank to raise equity of Rs 1,500 cr

Syndicate Bank to raise equity of Rs 1,500 cr

Syndicate Bank to raise equity of  Rs 1,500 cr

Syndicate Bank plans to raise equity capital of Rs 1,500 crore either by way of a QIP (Qualified Institutional Placement), rights issue or a follow-on public offer, the bank said on Thursday.

The equity raise is proposed to be completed within 12 months. The board resolved that the equity shares issued for raising Rs 1,500 crore shall rank with the existing shares of the bank, including dividend.

The decision was taken at the board of directors meeting of the company held on Wednesday. The board of the bank also approved the raising of Basel III Complaint Tier II capital of upto Rs 1,150 crore, at an appropriate time.

In its fourth quarter results ending March 31, 2014 posted on Wednesday, Syndicate Bank’s net profit after tax declined 31 per cent to Rs 409.3 crore on higher provisioning for non-performing assets (NPAs), from Rs 592.34 crore in the January-March quarter of 2012-13. 

Total income during the quarter increased to Rs 5,357.40 crore from Rs 4,780.75 crore a year earlier. For 2013-14, net profit slipped 14.6 per cent to Rs 1,711.46 crore from Rs 2,004.42 crore in the previous financial year. 

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