Central Bank of India at its shareholder meeting on Thursday decided to raise Rs. 3000 crore capital through equity sales, the company said in a regulatory filing to the stock exchange.
The bank explained that the sale could involve many of the various options including a follow-on public offer, rights issue or private placement. It added that private placement could also include qualified institutions placements (QIP) with or without over-allotment.
At its annual general meeting of shareholders discussed, approved and adopted the resolution to create, offer, issue and allot as an offer, in India or abroad, as many equity shares adding up to a value of Rs. 3000 crore.
Without divulging other details, the government run bank said it seeks to raise capital in one or more tranches.
Shares of Central Bank traded at Rs. 107.20 on Thursday, 0.05 percent higher from their previous close on the BSE.
It was earlier reported that Central Bank of India could possibly be one of the two banks, along with Dena Bank, that could be merged into the Union Bank of India. The move was in line with Indian government's stated goal of bringing down India's 26 state-owned bank to half dozen big banks.
State Bank of India, Punjab National Bank, Bank of Baroda, Canara Bank, along with the Union Bank of India are expected to become the Big 6 Indian Banks.