Bank of India to raise ₹500 cr through QIP in third quarter

MUMBAI: Bank of India (BoI) will raise ₹500 crore through a qualified institutional placement (QIP), a top official of the bank told Mint. The bank is in the process of finalising investment banks for the issue.

“We are well capitalised right now; the fund raising will be just for replenishment of capital. We will be raising about ₹500 crore in the next quarter,” Dinabandhu Mohapatra, MD and CEO of BoI said in an interview.

As on June 30, capital adequacy of BoI stood at 12.38% against the Basel-III requirement of 9%.

Several public sector banks are looking at raising funds from the market to shore up their capital as investor appetite remains strong, offering attractive valuations to PSBs. BoI’s gross nonperforming assets stood at 13.05% as on June 30.

In June, State Bank of India raised ₹15,000 crore through a QIP, the biggest so far by any bank in the country.

In August, Vijaya Bank raised ₹700 crore through a QIP. In a report dated 12 July, Press Trust of India reported that Andhra Bank will raise about ₹1,000 crore through a QIP in the next five months.

Mohapatra also said the bank will be selling its non-core assets during the year to further strengthen its capital.