of India raises $85 million in Tier I capital
28 March 2007
Bank of India has raised $85 million by way of Innovative
Perceptual Debt Instruments (IPDI) with a call option
after 10 years, to augment the bank's Tier-I capital requirements.
The instruments would be listed at Singapore Stock Exchange,
Bank of India informed the BSE.
The board of directors of the bank, at its meeting held
on January 22, had approved an increase in Tier I capital
by issuing Innovative Perpetual Debt Instruments (IPDI)
- Series I to the tune of Rs800 crore in domestic currency
and / or partly in foreign currency up to $85 million.
The board had also approved issue of upper Tier II capital
bonds to the tune of Rs1,200 crore on a private placement
basis at an appropriate time.
The Bank has posted a net profit of Rs254.87 crore for
the quarter ended December 31, 2006 as compared to Rs143.10
crore for the quarter ended December 31, 2005. Total Income
has increased to Rs2,641 crore from Rs2,063 crore.
Bank of India, meanwhile, announced that it has signed
a formal memorandum of understanding (MoU) on December
21, 2006 with Dai Ichi Mutual Life Insurance Company and
Union Bank of India for forming an insurance joint venture.
The bank will hold 51 per cent of the initial subscribed
and paid up capital, Dai Ichi Mutual Life Insurance Company
will hold 26 per cent and Union Bank of India will hold
23 per cent capital of the said venture.
Bank of India has also entered into an agreement to acquire
76 per cent stake in P T Bank Swadesi Tbk, of Indonesia
on December 11, 2006.
acquisition will be completed after obtaining necessary
approval / confirmations from Bank Indonesia and capital
market regulators in Indonesia. Established in 1906 in
Mumbai by a group of influential businessmen, Bank of
India was nationalised in 1969. Starting out with a single
branch, it grew to a network of 2,644 branches across
India, and 24 branches or representative offices in foreign
centres, including London, New York, Paris, Tokyo, Hong
Kong and Singapore. Its latest foreign branch in Antwerp
will specialise in providing services to the diamond trade
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