X
Switch to Hindi Edition

Indian Bank gets shareholders’ nod to set off accumulated loss with share premium account balance

During an extraordinary general meeting held on Monday, shareholders of the lender passed the resolution to utilise Rs 19,833.15 crore balance of the share premium account to set off the accumulated loss, it said.

For raising equity through QIP or FPO, the bank will take a call based on the market scenario and requirement.

State-run Indian Bank, which carried an accumulated loss of Rs 18,975.53 crore due to amalgamation of Allahabad Bank with it, will be setting off the loss with the share premium account balance, according to a regulatory filing.

During an extraordinary general meeting held on Monday, shareholders of the lender passed the resolution to utilise Rs 19,833.15 crore balance of the share premium account to set off the accumulated loss, it said.

ICRA Ratings has said that the recent proposal by some public sector banks (PSBs) to set-off their accumulated losses against the share premium account balances could improve the ability of these PSBs to service their AT-I bonds.

This adjustment will not impact the net worth and capital ratios of these banks, the rating agency added.

AT-1 bonds are a type of unsecured, perpetual bonds that banks issue to shore up their core capital base to meet the Basel-III norms.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

READ IN APP