Banks To Ensure 'True & Fair' Picture of Financial Position in Balance Sheet, P/L Statements: RBI

The Reserve Bank of India (RBI) has permitted the Jammu & Kashmir (J&Okay) authorities to acquire greater than Rs 16.76 crore shares in Jammu & Kashmir Bank on a preferential foundation. 

After this step, the fairness stake of the J&Okay authorities will go as much as 74.24 per cent within the financial institution. Meanwhile, this allotment follows a growth when the J&Okay authorities determined to switch an 8.23 per cent stake within the financial institution to the Union Territory of Ladakh. 

Earlier, the financial institution’s board additionally gave a inexperienced sign to a fundraise of as much as Rs 2,000 crore by way of a mix of debt and fairness. This additionally consists of elevating the fairness share capital of Rs 1,000 crore in a number of tranches. Apart from that, one other Rs 1,000 crore by way of non-convertible Tier-2 bonds within the nature of debentures on the idea of the personal placement. Talking concerning the LIC and East Bridge Capital Master Fund, they purchase round a 2 per cent stake every within the financial institution.

Meanwhile, in August the Securities and Exchange Board of India (SEBI) had freed the federal government of J&Okay from obeying its guidelines and rules on the substantial acquisition of shares. SEBI additionally exempted the takeovers within the proposed acquisition throughout 2021-22, stated the lender. 

Also, the Jammu and Kashmir Bank is the certainly one of its variety in the whole nation the place the Union Territory authorities (which was the state authorities earlier) acquires a majority stake. 

During the Financial Year (FY)20, the financial institution had directed and allotted 15,65,92,546 fairness shares to the J&Okay authorities on the idea of preferential charge.  

Apart from that, the advertiser of the financial institution, for money at a value of Rs 31.93 per fairness share which included a premium of Rs 30.93 per share within the wake of getting the important authorized and regulatory approvals. By and huge, the financial institution’s advances expanded by nearly 4 per cent to Rs 66,842 crore from Rs 64,399 crore. Along with that, the deposits enhance to 10.50 % to Rs 108,061 crore from Rs 97,788 crore throughout the FY March 2021.

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