SRINAGAR — Jammu and Kashmir Bank on Thursday said it plans to raise Rs 1,250 crore to strengthen its balance sheet and support its future growth plans.
The Board of Directors of Jammu and Kashmir Bank have approved a fundraising proposals to this effect.
In a regulatory filing, the Bank said that the capital raise comprises Rs 750 crore of equity share capital through a Qualified Institutional Placement (QIP) in one or more tranches, and Rs 500 crore through the issuance of Non-Convertible, Redeemable, Unsecured, BASEL III-compliant Tier 2 bonds on a private placement basis.
The approval to raise fresh capital underscores the Board’s confidence in the Bank’s trajectory and strengthens the lender’s ability to pursue calibrated growth, MD & CEO Amitava Chatterjee said.
The fundraising proposals will be subject to applicable regulatory approvals, a bank spokesman said here.
“The infusion will further enhance our capital adequacy, support business expansion across key sectors, enhance our ability to absorb risk, thereby reinforcing our long-term commitment to improved asset quality, profitability, and shareholder value,” Chatterjee said.
He further said that the leadership remains focused on building a strong, resilient and future-ready Bank by strengthening its ability to grow sustainably while meeting future business and regulatory requirements. — (PTI)