Bank of India board to meet today to discuss ₹6,500 crore fundraising plan

Bank of India (BoI) is set to discuss the possibility of raising capital up to ₹6,500 crore at its upcoming board meeting on Tuesday.

Earlier, BoI stated in a filing to the stock exchanges that its board will contemplate raising funds through various channels such as issuing bonds and equity capital for the fiscal year 2023-24.

During its upcoming meeting, the Bank of India's board will review the possibility of raising ₹4,500 crore through various means of issuing fresh equity capital such as preferential issues, rights issues, qualified institutional placements, or follow-on public offers.

Alternatively, the bank may choose to issue Basel-III compliant Additional Tier-1 bonds in domestic or foreign currency to raise the same amount if necessary.

In addition, the Bank of India will also examine the possibility of issuing Basel-III compliant Tier-2 bonds, with a maximum value of ₹2,000 crore, bringing the total potential capital raised to ₹6,500 crore for the current fiscal year.

For the quarter ending in December, the bank recorded a 12% YoY increase in net profit to ₹1,151, and a 64% YoY increase in net interest income to ₹5,596 crore.