- The Board of Directors at one of India's top state-owned banks has decided to raise over $1.7 billion from the market.
- The fund raising will include qualified institutional placement to shore up tier-I capital.
- The decision is subject to regulatory approvals.
This will be the breakup of the fund raising:
Common equity capital including QIP | ₹9,000 crore |
Fund raising with interchangeability option | ₹4,500 crore |
This will be subject to applicable statutory 1 regulatory approvals, the company statement added.
The decision has come in on a day that the financial stocks were battered in trade. The
These were the top ten losers among banking stocks in trade today.
IDFC First Bank | -6.33% |
IndusInd Bank | -5.60% |
Axis Bank | -5.59% |
ICICI Bank | -4.50% |
Federal Bank | -4.40% |
Bank of Baroda | -4.23% |
SBI | -3.50% |
PNB | 3.04% |
HDFC Bank | -1.88% |
Bandhan Bank | -1.02% |
The prospects for India's financial firms is going from bad to worse even as the economy is getting reopened slowly. "Lower credit offtake and significantly higher credit cost for FY21/FY22 have led to FY21E earnings cuts of 9-70% for financials we cover, with diversified financiers impacted the most. Subsequently, we lower our target price (for bank stocks) by 32% on average," BNP Paribas said in a report last week titled 'Down but not out".
SEE ALSO:
$4
$4
How to check account balance of bank of baroda