State-owned Bank of India (BoI) plans to raise Rs 6,000 crore from Tier I and II bonds to fund its business growth.
The bank has got shareholders’ nod in this regard in the Annual General Meeting held Monday.
The shareholders have approved the issuance and allotment of bonds and other securities for Tier I, Tier II capital of up to Rs 6,000 crore via qualified institutional placement (QIP), public issue, rights issue or such other issues, BoI said in regulatory filing.
As per the annual report, the bank issued Basel-III-compliant perpetual additional Tier-I bonds worth Rs 2,500 crore with call option in fiscal year 2015.
“With a view to comply with Basel (II & III) requirements relating to capital adequacy, there is an ever increasing need to raise capital that would be utilised to shore up the capital adequacy of the bank and to fund the general business needs,” it said.
For the entire 2014-15 fiscal, BoI reported 37 per cent dip in standalone net profit at Rs 1,708.92 crore. It had a net profit of Rs 2,729.27 crore in 2013-14.
The total income rose to Rs 47,662.61 crore for the year ended March 31, 2015, from Rs 42,201.94 crore a year ago.
On consolidated basis, the group reported a net profit of Rs 2,012.90 crore for 2014-15, down 32.6 per cent over previous year.