BoI to allot preferential shares to govt for ₹3,000cr capital infusion
Bank of India shares closed at ₹67.25 apiece on BSE, down 3.72% from the previous close.
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. Updated: 05 Apr 2021, 04:45 PM IST PTI
Bank of India today said it has convened an EGM of shareholders this month for seeking approval to the allotment of preferential shares to the government for ₹3,000 crore
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NEW DELHI :
State-run Bank of India on Monday said it has convened an extra-ordinary general meeting (EGM) of shareholders this month for seeking approval to the allotment of preferential shares to the government for ₹3,000 crore.
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https://mybs.in/2ZdWf6l The Jammu & Kashmir government will infuse up to Rs 500 crore more as equity into Jammu and Kashmir Bank (J&K Bank) as its promoter shareholder. Rating agency India Ratings (Ind-Ra) said J&K Bank will need substantial equity infusion in the first half of this financial year to maintain adequate capital buffers amid high credit costs, until March 2023. The bank’s common equity tier 1 (CET1) ratio marginally improved to 8.56 per cent in December 2020 as against a minimum CET1 requirement of 7.38 per cent. The capital adequacy improved on equity infusion of Rs 500 crore by the J&K government in Q4FY20 and three profitable quarters in FY21. Its CET1 was 8.42 per cent in March 2020 and 9.13 per cent in March 2019. The bank’s board will discuss the proposal of capital infusion.
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Union Cabinet has cleared the setting up of a Development Finance Institution (DFI), in acknowledgement of the realization that both development and financial objectives will matter for setting up a DFI, said Finance Minister Nirmala Sitharaman.