Bank of India plans stake sale to meet SEBI minimum public ownership standards

Bank of India plans stake sale to meet SEBI minimum public ownership standards

Post share-sale, depending on the quantum, the holding of Government of India would come down below 75 percent.

Public sector banks have time till August 2024 for meeting the SEBI requirement, Karnatak said.

The state-owned Bank of India is exploring the possibility of selling shares to investors over the next year to meet the minimum 25% public ownership requirement.

The Indian government currently owns an 81.41 per cent stake in the Mumbai-based bank.

“We are considering options to meet the minimum holding requirements of the Securities and Exchange Board of India (SEBI). Rajneesh Karnatak told PTI.

Public banks will have to meet SEBI requirements by August 2024, he said. After the sale of shares, the Indian government’s stake will be less than 75%, depending on the size. Commenting on the bank’s growth, he said lending growth is expected to be 11-12% this year, supported by lending to retailers, micro, small and medium enterprises (MSMEs) and agriculture.

As a long way because the deposit is concerned, he stated, “We wish to develop the legal responsibility aspect with the aid of using 10 in step with cent for the duration of contemporary economic year.”

On being requested approximately the aid mobilisation plan of the financial institution, he stated, “Capital Adequacy Ratio of the financial institution stood at 16.28 percentage in March 2023 and this ought to be sufficient to attend to mortgage increase for the duration of the year. However, the board has given its approval to elevate capital aggregating as much as Rs 6,500 crore in FY24 via bonds.”

“As in step with the board approval, the financial institution can improve as much as Rs 4,500 crore from follow-on public offer/ certified institutional placement/rights trouble/preferential trouble and/or Basel III compliant extra tier-1 (AT-1) bonds even as closing Rs 2,000 crore through Basel III compliant Tier-2 bonds in a single or extra tranches. It might be performed whilst the want arises and marketplace situations are conducive,” he added.

Karnatak, even as addressing a metropolis corridor meet in New Delhi on July 5, requested officials and team of workers to consciousness on Current Account Savings Account (CASA) mobilisation and boom non-hobby income. He stated the financial institution is “running closer to aligning its IT and virtual banking merchandise to hold tempo with digitalisation and improved consumer experience.”

Karnatak, in presence of Field General Manager Prashant Thapliyal and head authorities commercial enterprise D S Shekhawat, stated “each worker ought to consciousness on consumer pleasure and enhancing efficiency.”