Syndicate Bank To Raise Rs 500 Crore Via Stock Options
Syndicate Bank will raise up to Rs 500 crore by issuing stock to its staff under the employee share purchase scheme. Shares will be given at a 15-25 per cent discount to employees.
The CEO of Syndicate Bank, Mrutyunjay Mahapatra said that the bank had proposed to raise the funds this quarter or early next quarter.
The bank will issue 300 million shares to employees to raise this capital. The proposal is approved by the board. The bank will approach Sebi soon.
Bank of India, Canara Bank, Allahabad Bank, United Bank and Union Bank of India are among the lenders that offered shares to employees to raise capital after the government in March 2017 allowed them to offer stock options to employees.
The move is aimed at retaining talent while raising capital.
The bank has 7 per cent excess statutory liquidity ratio to fund growth. New Delhi owns 72 per cent in the bank and is willing to sell up to 2 per cent. The bank had CRAR Basel III of 10.95 per cent as on September 30.
The CEO also stated that the employee share purchase will be offered at a 15-25 per cent discount to the current market value.
He went on saying that the plan is approved by the board and the shareholders. I am going across the country to do employee townhalls.” Syndicate Bank had reported a net loss of Rs 1,524 crore in the second quarter due to higher provisioning for bad loans.