An extra-ordinary general body meeting of the shareholders of Indian Bank, on Monday, gave its nod for converting Rs.400-crore perpetual non-cumulative preference shares (PNCPS) into equity. The conversion will be done by allotting 3.51 crore equity shares of Rs.10 each at a conversion price of Rs.114.03 (including premium of Rs.104.03) to the Government of India. Following this, the Centre’s holding will go up to 81.51 per cent from the pre-existing level of 80 per cent, said a release quoting T. M. Bhasin, CMD of the bank.

“The bank is well capitalised, and the conversion of PNCPS into equity will further strengthen the common equity Tier-I capital (CET-I) to 10.39 per cent,” he said.

The net worth of the bank stands at Rs.11,726.50 crore, and if the plough back of profits for three quarters of the current financial year is considered, the CET-I is 10.89 per cent.

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