Bank of India is looking to raise Tier-I capital of around of Rs 7,800 crore through a fresh issue of 18 crore equity shares.

The public sector bank is considering various options including a rights issue, follow-on public issue, qualified institutional placement or depository receipts to raise the capital, it said in a notice to the BSE, on Wednesday.

At the current market price the bank could raise around Rs 7,800 crore. However, the bank has said that it would issue the shares at a premium.

As on March 31, BoI's Capital Adequacy Ratio was 12.17 per cent.

BoI's Chairman and Managing Director, Mr Alok Misra, had earlier this month said, his bank may look at either a follow on public issue or a rights issue to raise Tier-I capital in the current fiscal to maintain its CAR at 13 per cent and Tier-I capital at 8.5 per cent. While announcing the bank's fourth quarter results, Mr Misra had said, “The government's share in our bank is close to 66 per cent. As the government has to maintain its stake at 51 per cent in all public sector banks, we have enough headroom to dilute the government stake. We do require the capital given our growth plans.”

BoI is one of the public sector banks in which the central government has infused equity through a preferential issue. In March, the bank raised around Rs 1,000 crore through a preferential issue to the government.

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