IDBI Bank calls AGM to seek nod for fund-raising

The board of IDBI Bank has approved an annual general meeting (AGM) to raise funds through the equity route. Shareholders will approve the fund-raising in the AGM. “…the board of directors of IDBI Bank at its meeting held on Thursday has approved the notice convening the 18th annual general meeting of the bank which included passing an enabling special resolution for issue of equity capital through various modes,” the lender said in an exchange filing.

In December 2020, IDBI Bank had raised Rs 1,435 crore via qualified institutional placement. Life Insurance Corporation, which holds a little over 49% stake in the bank, infused Rs 4,743 crore into the lender in October 2019. In its previous AGM, the bank had sought the approval of its shareholders for raising Rs 7,500 crore via equity, according to information in its annual report for FY21.

Earlier this month, the bank announced sale of some non-core assets. The lender agreed to sell its 25% stake in Ageas Federal Life Insurance Company to Ageas Insurance International NV for Rs 580 crore. The bank also completed sale of 20% stake in Asset Reconstruction Company (India) to Avenue India Resurgence Pte.

In Q4FY22, the bank reported a net profit of Rs 691 crore, compared with Rs 512 crore for the same quarter last year. As on March 31, 2022, the lender’s capital adequacy ratio improved to 19.06%, compared to 15.59% a year ago.

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