BoI to raise up to Rs 7,700 cr from fresh equity

State-owned Bank of India (BoI) today said it would raise funds by issuing up to 18 crore fresh shares through public offer or private placement.

At the current market price, the bank could raise about Rs 7,700 crore from the market.

The board of the bank at its meeting held today has approved the proposal to raise capital by issue up to 18,00,00,000 fresh equity shares for Rs 10 each at an appropriate premium, BoI said in a filing to the Bombay Stock Exchange (BSE).

The fund could be raised by any mode decided at an appropriate time like right issue or follow on public offer or qualified institutional placement or depository receipts and others, it said.

Shares of BoI closed at Rs 428.30, up by 1.48% on the BSE.

For the full financial year ended March 31, 2011, BoI posted a net profit of Rs 2,488.7 crore, up by 43% as compared to Rs 1,741 crore in the last fiscal.

The bank's total income during 2010-11 rose to Rs 24,393.5 crore from Rs 20,494.6 crore in 2009-10.

Its overall credit growth stood at 22.16% for the year, while the deposits were up by 28.68%.

Source: Business Standard