Government will reduce its stake in this bank, FPO may come soon, approval from board

Public sector Bank of India will this year explore the possibility of the share sale to meet the condition of public shareholding of at least 25 percent set by SEBI. Currently, the Government of India holds an 81.41 percent stake in the Bank of India.
Talking to news agency PTI, Bank of India MD Rajneesh Karnataka said that we are exploring options to meet SEBI's minimum public shareholding. However, the target of the sale of shares depends on the market conditions. Public sector banks have time till August 2024 to comply with SEBI rules.
As per SEBI rules, the promoters' stake in any publicly listed company cannot exceed 75 percent. Shares can be sold in such public sector banks in which the government's stake is more than 75 percent.
He further said that the credit growth could be 11 to 12 percent in the current financial year due to the high demand for retail, MSME, and agriculture loans. The bank's capital adequacy ratio as on March 2023 stands at 16.28 percent. This is enough for loan growth for this financial year.
The bank plans to raise Rs 6500 crore in FY2024. Out of this, the board has approved raising Rs 4,500 crore through follow-on public offer/ QIP/ rights issue and preferential shares. At the same time, approval has been given to raise Rs 2000 crore through AT-1 bonds.
The entire focus of the bank is to increase CASA and non-interest income. Along with this, the bank is working towards digitization and improving the customer experience.