In a bid to maintain its capital adequacy ratio at 12 per cent, Syndicate Bank is seeking Rs 800 crore equity infusion from the Union Government during the current financial year. At present, the Government holds 67.39 per cent stake in the bank.
The bank proposed to raise equity capital by way of rights issue or qualified institutional placement (domestic and foreign) or through a follow-on public issue, based on market conditions, and approach the market for Basel III compliance through additional tier-I and tier-II bonds.
Besides, to meet the working capital requirements of its branch in London, the bank will raise $350 million through medium-term notes from international markets. It has secured the mandate to raise up to $2 billion for the purpose.
The bank has posted a fall of 30.90% in its net profit at Rs 409.30 crore for the quarter ended March 31, 2014 as compared to Rs 592.34 crore for the same quarter in the previous year. However, total income of the bank has increased by 12.06% at Rs 5357.40 crore for quarter under review as compared to Rs 4780.75 crore for the quarter ended March 31, 2013.
