The Hindu : Business : Oriental Bank to raise Rs. 1,500 crores

Online edition of India's National Newspaper
Wednesday, Dec 29, 2004

Business

Business

Oriental Bank to raise Rs. 1,500 crores

NEW DELHI, DEC. 28. Oriental Bank of Commerce plans to raise up to Rs. 1,300-1,500 crores in its second public offer slated within this fiscal. "The OBC board meeting today discussed ways of raising capital from the market in the range of Rs. 1,300-1,500 crores through its second public offer," a top OBC official told PTI after the board meeting in Chennai. He said the bank would offer five crore shares for Rs. 50 crores with a face value of Rs. 10 per share.

The OBC scrip traded at over Rs. 332 per share today on the major bourses.

The issue would be open to public in three months as the bank needs to seek the approval of government, which has 66.5 per cent holding. The bank would then decide on the price band and work out other details, the official said.

Besides raising capital, the bank board discussed a host of other issues, including appointment of a global consultant to synergise the merger of Global Trust Bank with it.

The bank is shoring up its capital base as part of efforts to meet the stringent Basel-II norms to be effective from December 2006.

The bank intends to dilute government holding by about 10 per cent to 56.5 per cent after the public offer, the official said but declined to give the price of the issue. The Delhi-based OBC has a share capital of Rs. 193 crores as on September 2004 and reserves worth Rs. 2,484 crores.

— PTI

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