State-owned Syndicate Bank has said its board approved a proposal to raise up to ₹250 crore by issuing shares to its employees under the employee stock purchase scheme.

The board of directors of the bank in a meeting held on Wednesday approved the proposal to raise capital up to ₹ 250 crore by way of issue of equity shares under employee stock purchase scheme (ESPS), the bank said in a regulatory filing.

The money would be raised in one or more tranches.

Syndicate Bank will convene an extraordinary general meeting on October 29 to seek approval from shareholders on issuing shares to employees under the ESPS.

The ‘Compensation Committee of the Board’ will decide all the modalities of ESPS scheme, the bank said.

Another state-run lender Bank of India said Thursday a meeting of the Compensation cum Allotment Committee (CAC) of the bank is scheduled to be held on September 18, 2018 to allot shares to employees.

Bank of India plans to offer 10 crore shares under the ESPS.

The committee will consider, finalise and approve a scheme namely “Bank of India-Employee Stock Purchase Scheme, 2018 (BOI ESPS)” for issue of up to 10 crore new equity shares of the bank to eligible employees, Bank of India said.

The government in March 2017 had allowed public sector banks to offer stock options to their employees, aimed at retaining experienced hands and better incentives besides a means of capital raise.

Allahabad Bank has raised nearly ₹ 236 crore in its maiden ESPS scheme.

United Bank completed the issue of around 5 crore fresh equity shares to employees under the scheme on August 31, 2018.

PNB will offer 10 crore shares under the scheme and the Nomination and Remuneration Committee of the bank is tasked to decide on the matter.

Canara Bank will issue up to 6 crore equity shares to its staff to raise up to ₹ 1,000 crore under employee stock purchase scheme.

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