Thrissur-based Catholic Syrian Bank is considering a slew of capital augmentation plans, including a listing on the stock exchanges.
A special resolution to the effect is proposed to be moved for consideration by the shareholders.
RIGHTS ISSUE
The resolution is only an enabling one, according to sources. The bank may also consider a rights issue to augment its capital base substantially to support business plans and comply with regulatory requirements.
Another resolution seeks shareholder approval for enhancing the authorised capital. The present authorised capital is Rs 100 crore. The unissued equity share capital available for further issue is Rs 48.42 crore.
It is proposed to enhance the authorised capital by infusing additional equity. The bank has sought ‘no objection’ from the RBI for altering the capital clause.
The bank also proposes to raise further debt capital by way of bonds to shore up the capital adequacy levels.
BORROWING LIMIT
It is proposed that the permissible borrowing limit may be increased to Rs 1,000 crore from the existing Rs 500 crore.
The bank has sought ‘no objection’ from the apex bank for carrying out proposed alterations in the objects clause of the Memorandum of Association.
It is also proposed to modify some of the existing provisions in the Objects Clause to include a few additional ones to enable the bank meet present and anticipated business requirements.