JK Bank's Board of Directors approve plan to raise Rs 4500 Cr capital

The Jammu & Kashmir Bank’s Board-of-Directors have approved the Bank’s plan to raise capital up to Rs 4500 Cr in the current financial year. During a meeting chaired by the Bank’s CMD, R K Chhibber at the bank headquarters through video conferencing, the board approved the proposal of ‘raising Equity Share Capital up to Rs 3500 Cr in one or more tranches by way of Rights Issue/Preferential Allotment/Private Placement/Qualified Institutional Placement (QIP)/ESPS or any other approved mode.’

The board also approved the ‘raising of Capital up to Rs 1000 Cr by way of Non-Convertible, Redeemable, Unsecured, BASEL III Compliant, TIER-II bonds in the nature of debentures on a private placement basis.’ The bank will now place the board’s decision in its upcoming Annual General Meeting (AGM) for approval of its shareholders, as all such board decisions are subject to approval of shareholders at the ensuing AGM in addition to other regulatory approvals.