RBL Bank said on Friday its board has approved the proposal to issue preference shares worth Rs 1,680 crore.
RBL Bank said on Friday its board has approved the proposal to issue preference shares worth Rs 1,680 crore. The board “approved the proposal to issue 3.26 crore shares of face value of Rs 10 on a preferential basis to one or more prospective investors at a price of Rs 515 per equity share totalling Rs 1,680 crore (including share premium)…” the bank said in an exchange filing. The purpose of this fund-raising is to augment the bank’s tier-I capital for supporting the future organic growth of business, enabling it to capitalise on inorganic opportunities and for other general corporate purposes. The proposal will be subject to the regulatory and shareholder approvals. The prospective investors include ABG Capital, HDFC Standard Life Insurance Company, ICICI Lombard and Multiples Private Equity, among others. The announcement comes a day after the bank disclosed that the Reserve Bank had found it under-reporting its gross non-performing assets by Rs 339.30 crore for the year ended March 2016m, reports PTI. The bank had reported gross NPAs of Rs 208.05 crore whereas RBI assessed the dud assets stock to be at Rs 547.35 crore, it said in the annual report.