Canara Bank to raise Rs.85 cr through QIP

Canara Bank will raise up to Rs.85 crore through qualified institutional placement (QIP) in the current fiscal.

It received Finance Ministry nod on Friday for raising equity capital of Rs.80 crore (eight crore shares of Rs.10 each) with additional share premium, with a green shoe option of Rs.5 crore through QIP.

This was announced by Canara Bank in a filing to the BSE on Saturday.

Stating steps were being initiated in this direction, the filing said a meeting of the board of directors in April had discussed various options to raise capital on account of BASEL III guidelines and also to fund the general business needs of the bank.

The meeting had decided to either take the QIP mode or the preferential allotment mode.

The Bank obtained the shareholders’ consent at the AGM in July for raising the equity through QIP.