South Indian Bank gets nod to raise Rs 240 crore

The lender said that up to 28,30,18,867 equity shares of face value of Rs 1 each at an issue price of Rs 8.48 each will be issued to the insurance companies.

South Indian Bank (SIB) said in a regulatory filing on Tuesday that an extraordinary general meeting (EGM) of the bank approved the special resolution 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 said that up to 28,30,18,867 equity shares of face value of Rs 1 each at an issue price of Rs 8.48 each will be issued to the insurance companies.

Post-allotment of the securities HDFC Life, Kotak Mahindra Life and SBI Life will hold 4.23 % shares of the bank each, while ICICI Lombard General Insurance will hold 0.85 % share.

SIB had obtained approval of shareholders in the last annual general meeting for raising of funds in Indian or foreign currency by way of issuance of debt securities up to Rs 500 crore.

South Indian Bank has also obtained approval of shareholders for increasing the authorised capital of the bank to Rs 350 crore. The Thrissur-based bank had reported a net loss of `91.62 crore in the third quarter of the fiscal on account of higher credit cost.