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Central Bank to tap Rs 2,419 cr

Last Updated 16 March 2015, 19:54 IST

Central Bank has decided to raise tier-1 capital of Rs 2,419 crore or more during the next financial year through various instruments.

“The board of directors of the bank has inter-alia approved the proposal to explore and raise tier-1 capital of Rs 2,419 crore or above amount if required or if found suitable during financial year 2015-16 either by issuance and allotment of equity shares and/or  innovative perpetual debt instruments (IPDI) and perpetual non-cumulative preference shares (PNCPS) having characteristics of tier-1 capital as per BASEL III guidelines which invariably should contain the features of loss absorption clause i.e. AT1, or combination of them, through various modes such as preferential issue, qualified institutional placement (QIP), rights issue, follow on public offering (FPO) etc. for equity shares, and on private placement basis for IPDI and PNCPS, Central Bank said in an intimation to the exchanges.

The fund raising proposal is subject to approval of government of India, Reserve Bank of India and other statutory authorities.

The capital raising committee of the board was also authorised to take all operative steps necessary.

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(Published 16 March 2015, 19:54 IST)

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