In a regulatory filing, South Indian Bank (SIB) mentioned on Friday that it has got its board’s approval to raise Rs 240 crore by issuing equity shares on a preferential basis from HDFC Life Insurance Company, Kotak Mahindra Life Insurance Company, SBI Life Insurance Company and ICICI Lombard General Insurance Company.
The lender mentioned that up to 28,30,18,867 equity shares of face worth of Rs 1 every single at an problem cost of Rs 8.48 every single will be issued to the insurance coverage firms, topic to the approval of the shareholders and regulator.
Post-allotment of the securities HDFC Life, Kotak Mahindra Life and SBI Life will hold 4.23 % shares of the bank every single though ICICI Lombard General Insurance will hold .85 % shares.
The board has also authorized the convening of an extraordinary basic meeting of the shareholders of the enterprise to be held on Tuesday (March 23,2021) for in search of their approval for the proposed preferential allotment.
SIB had obtained approval of shareholders in the final AGM for raising funds in Indian or foreign currency by way of issuance of debt securities up to Rs 5OO crore. The lender has also obtained approval of shareholders for growing the authorised capital of the bank to Rs 350 crore.
The bank had reported a net loss of Rs 91.62 crore in the third quarter of the fiscal on the account of greater credit price.
The lender had mentioned earlier that it will concentrate on 6Cs , which consists of, raising capital , CASA (existing and savings account), price-to-revenue, competency constructing, client concentrate, and compliance in the medium term, to obtain profitability via good quality-credit development.
Under the new program ‘Vision 2024’, the bank aims to attain a loan book of Rs 1 trillion, CASA mix of 35%, PCR (provision coverage ratio) of more than 65% and net interest margin (NIM) of 3.5% by 2024. The program consists of vertical structure for assets business enterprise and information analytics group to play a vital part in business enterprise and collections.