IDBI Bank issues preferential shares worth Rs3,119 crore to government
23 Jul 2010
IDBI Bank will issue preferential shares to the Government of India worth a total Rs3,119.04 crore.
The board of directors of IDBI Bank approved the rights issue proposal, at its 6th annual general meeting held on Thursday, the bank said in a filing with the Bombay Stock Exchange (BSE).
IDBI Bank will issue 259,509,110 equity shares of Rs10 each, at a price of Rs120.19 per share (including a premium of Rs110.19 per share), aggregating to Rs3119.04 crore to the government.
Highlighting the performance of the bank during the financial year 2009-10, R M Malla, chairman and managing director, said the bank achieved a net profit of Rs1,031 crore and also crossed business of Rs3,00,000 crore during the 2009-10 financial year.
He said the bank, with the best-in-class IT and operations platform, specialised skills in project financing, high quality corporate and retail relationships, sees relationship-building with customers as key to future growth.
Going forward, he said, the bank would capitalise on its intimate knowledge of Indian economy and its key players to enhance business growth while simultaneously participating in the country's growth process.
The AGM, inter alia, padded a resolution to increase the authorised capital of the bank from Rs1,250 crore to Rs2,000 crore to enable it to raise additional capital.
The board also approved, in-principle, the merger of IDBI Homefinance Ltd, a wholly owned subsidiary of IDBI Bank Ltd, with the Bank.