Syndicate Bank to Raise Rs 500 Crore via Stock Options, Giving 15-25% Discounts to Staffs
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Public sector lender Syndicate Bank will be offering employee share purchase scheme and would raise up to Rs 500 crore by issuing stock to its staff. Syndicate Bank proposes to raise the funds this quarter or early next quarter.
Mr. Mrutyunjay Mahapatra, CEO of Syndicate Bank said that
Employee share purchase will be offered to staff at a 15-25 per cent discount to the current market value. The bank proposes to raise the funds this quarter or early next quarter. The bank will issue 300 million shares to employees to raise this capital. The proposal is approved by the board. The bank will approach Sebi soon. He further added that the plan is approved by the board and the shareholders. I am going across the country to do employee town halls.
Earlier other Public Sector Banks like Bank of India, Canara Bank, Allahabad Bank, United Bank and Union Bank of India are among the lenders that offered shares to employees to raise capital after the government in March 2017 allowed them to offer stock options to employees.The reason given against offering the stocks to staff of Public Sector Banks is aimed at retaining talent while raising capital.
The bank has 7 per cent excess statutory liquidity ratio to fund growth. Government owns 72 per cent in the bank and is willing to sell up to 2 per cent. The bank had CRAR Basel III of 10.95 per cent as on September 30.
Read – How To Pay Syndicate Bank Credit Card Minimum Outstanding Bill Amount ?
The bank’s bad loans rose for the quarter, with gross non-performing loans hitting 12.98 per cent of the gross advances, and net NPA at 6.83 per cent.
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