The extraordinary general meeting (EGM) of shareholders of Syndicate Bank has approved the allotment of 3,74,74,541 equity shares for cash aggregating ₹460 crore on a preferential basis to the Government of India.

Addressing presspersons after the EGM at Manipal on Tuesday, TK Srivastava, Executive Director of the bank, said that to comply with the Basel-III requirements relating to capital adequacy the Government of India has decided to infuse ₹460 crore throught preferential allotment of equity in its favour.

“We are hopeful that we will get ₹460 crore by the end of this month,” he said.

Apart from this tier-1 capital of ₹460 crore, the bank has got approval for raising another ₹1,000 crore of tier-1 capital. Syndicate Bank management will decide on the mode of mobilising that capital, he said.

Stating that Syndicate Bank has got approval for raising tier-2 capital of ₹1,150 crore, Srivastava said ₹750 crore of the amount was mobilised in September, and another ₹400 crore was mobilised two days ago through an issue of bonds. That the bank got at a coupon rate of 8.75 per cent, he said.

Under the Basel-III requirements, the bank will require capital funds of ₹3,500 crore in the next three years.

Ravi Shanker Pandey, Executive Director of the bank, was present on the occasion.

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