IDBI Bank’s Board of Directors has approved an Annual General Meeting (AGM) to raise funds through equity. Shareholders will approve the fundraising at the general meeting. “…IDBI Bank’s Board of Directors, at its meeting held on Thursday, approved the notice of the bank’s 18th Annual General Meeting, which included the passing of a special resolution allowing the ‘equity issuance through various modes,’ the lender said in an exchange filing.
By December 2020, IDBI Bank had raised Rs 1,435 crore through a qualified institutional placement. Life Insurance Corporation, which owns just over 49% of the bank’s equity, paid Rs 4,743 crore to the lender in October 2019. At its previous annual general meeting, the bank sought approval from its shareholders to raise Rs 7,500 crore through equity, according to information in its annual report for FY21.
Earlier this month, the bank announced the sale of some non-core assets. The lender has agreed to sell its 25% stake in Ageas Federal Life Insurance Company to Ageas Insurance International NV for Rs 580 crore. The bank also completed the sale of a 20% stake in Asset Reconstruction Company (India) to Avenue India Resurgence Pte.
In Q4FY22, the bank reported a net profit of Rs 691 crore, compared to Rs 512 crore for the same quarter last year. As of March 31, 2022, the lender’s capital ratio improved to 19.06% from 15.59% a year ago.