Central Bank of India has received an approval to explore and raise TIER I capital of Rs 2,419.00 crore or above amount if required or if found suitable during Financial year 2015-16. The board of directors at their meeting held on March 14, 2015 has approved for the same.
The raising of funds will be either by issuance and allotment of equity shares and/or Innovative Perpetual Debt Instruments (IPDI) and Perpetual Non-Cumulative Preference Shares (PNCPS) having characteristics of TIER I capital as per BASEL III guidelines which invariably should contain the features of loss absorption clause i.e. AT1, or combination of them, through various modes such as - Preferential Issue, QIP, Rights Issue, FPO, etc. for equity shares, and on private placement basis for IPDI and PNCPS.
The above is subject to approval of Government of India, Reserve Bank of India and other statutory authorities (if any). The Capital Raising Committee of the Board was also authorized to take all operative steps and do all such acts, deeds & things as may be deemed necessary and incidental for raising of TIER I Capital.
