State-owned Bank of India is preparing to launch a qualified institutional placement (QIP) later this week, sources privy to the developments told CNBC-TV18.
The QIP is anticipated to be in the range of ₹3,500-4,000 crore. It will consist of a base issue in the range of ₹2,000-2,500 crore, with an additional greenshoe option of ₹1,500 crore, sources in the know told CNBC-TV18.
Sources suggest that the issue price could potentially be offered at a discount to the Securities and Exchange Board of India (SEBI) floor price.
Bank of India reported a 52% jump in the net profit at ₹1,458 crore in the September 2023 quarter. The bank had reported a post-tax profit of ₹960 crore in the year-ago period.
Its core net interest income climbed 13% to ₹5,740 crore during the quarter on the back of a 10% growth in advances and a 0.04% widening in the net interest margin at 3.08%. The non-interest income increased 19% to ₹1,688 crore in the reporting quarter.
The gross non-performing assets ratio improved by 0.83% to 5.84% in the later quarter from 6.67% recorded in June. The bank's total Capital Adequacy Ratio (CRAR) was at 15.63% as of September 30, 2023.
Shares of Bank of India Ltd ended at ₹109.20, up by ₹1.65, or 1.53% on the BSE.
