Thursday, December 27, 2007

Bank Of India To Raise Money via QIP

Public sector lender Bank of India on Thursday said that it will raise money through Qualified Institutional Placement (QIP) of shares to meet credit requirement ahead of Basel II implementation.

It will raise tier I capital by way of issue of up to 3.77 crore equity shares through QIP route, Bank of India informed the Bombay Stock Exchange.
QIP is likely to dilute government's stake by 5 per cent and bring it to 64.4% from 69.4% at present.

The placement would be made post Extra Ordinary General Meeting of the shareholders scheduled on January 23, 2008, it said.The bank said, as per the Finance Ministry's approval, the placement would be made only with public sector enterprises and mutual funds.

The decision to this effect was taken in its board meeting held on Thursday.
Bank of India shares were trading at Rs 366, down 0.64 per cent.
The country's sixth largest bank in terms of assets is also expecting up to 24 per cent loan growth in the current fiscal.
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