Syndicate bank,a state owned financial institution announced today that it will raise upto Rs.4300 crores through various instruments including Basel-III compliant bonds, rights issue and preferential allotment this financial year.
In a filing to the BSE, Syndicate Bank said "The Board of Directors approved to raise equity capital of Rs. 1,700 crore inclusive of premium to be decided as per the guidelines by way of Qualified Institutional Placement (QIP)/Rights Issue/Preferential allotment or any other mode. during financial year 2016-17. The board also approved to raise Basel-III compliant additional tier-I bonds up to Rs. 1,000 crore and tier-II bonds up to Rs. 1,600 crore during financial year 2016-17."
Syndicate Bank had reported a net loss of Rs 2,158 crore for the March quarter due to over threefold rise in provisions for bad loans and contingencies. It also raised provisioning towards bad loans and contingencies to Rs 2,411.83 crore in the last quarter of 2015-16 as against Rs 715.30 crore in the year-ago period. Syndicate Bank shares were trading 1.02% lower at Rs 67.75 on BSE in the morning session.