South Indian Bank Ltd to raise funds

The Board of Directors of South Indian Bank Ltd at its meeting held on June 02, 2015, has decided to augment Tier I capital by way of increasing the paid-up capital of the Bank by issue of equity shares not exceeding Rs.20 crores in nominal value, in one or more tranches, on such terms and conditions as it may deem fit, subject to the approval of Reserve Bank of India, Shareholders and other regulatory authorities, if any. The mode, price and time of the issue will be intimated in due course.

The Board approved proposal to seek the approval of Shareholders in the ensuing Annual General Meeting to increase the Foreign Direct Investment Limit by 10% (i.e. from 49% to 59%) under the "approval route" and to approach the FIPB for their approval.

The Board approved proposal to increase borrowing power from the present limit of Rs. 5,000 Crores (Rupees Five Thousand Crores) to Rs. 6,000 Crores (Rupees Six Thousand Crores) pursuant to Section 180(1)(c) and other applicable provisions, if any, of the Companies Act, 2013 subject to the approval of Shareholders in the ensuing Annual General Meeting.

The Board also approved proposal to authorize the Board to issue Basel III compliant Tier II Bonds, to be considered for Capital Fund purpose and / or Long term bonds for Infrastructure (Project) Finance and Affordable Housing in the nature of debentures on private placement basis, for a total face value not exceeding Rs. 1000 Crores.

Shares of SOUTH INDIAN BANK LTD. was last trading in BSE at Rs.23.55 as compared to the previous close of Rs. 24.45. The total number of shares traded during the day was 617394 in over 920 trades.

The stock hit an intraday high of Rs. 24.55 and intraday low of 23.35. The net turnover during the day was Rs. 14650962.

Source : Equity Bulls

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