If necessary, the bank may also decide to raise the same amount by issuing Basel-III compliant Additional Tier-1 bonds in either domestic or foreign currency. At its upcoming board meeting on Tuesday, the Bank of India (BoI) plans to examine the prospect of raising capital up to 6,500 crores.
In a previous filing to the stock exchanges, BoI said that its board would consider raising money for the fiscal year 2023–2024 through a variety of means, including the issuance of bonds and equity capital.
The board of the Bank of India will consider the potential for obtaining $4,500 crore through a variety of new equity capital issuance strategies, including preferential issues, rights issues, qualified institutional placements, or follow-on public offers, at its upcoming meeting.
If necessary, the bank may also decide to raise the same amount by issuing Basel-III compliant Additional Tier-1 bonds in either domestic or foreign currency.
The Bank of India would also consider the idea of issuing Tier-2 bonds that are Basel-III compliant and have a maximum value of 2,000 crore, raising the total amount of capital that could be raised for the current fiscal year to 6,500 crore.
The bank reported a 12% YoY increase in net profit for the December-end quarter to $1,151 and a 64% YoY increase in net interest income to $5,596 crore.
