Canara Bank to raise Rs 10 billion under employee stock purchase scheme

Canara Bank

State-owned Canara Bank will issue up to 60 million equity shares to its staff to raise up to Rs 10 billion under employee stock purchase scheme.

The bank has plans to raise Rs 70 billion during 2018-19.

"The board has decided to raise equity share capital up to Rs 600 million ( i e up to 60 million equity shares), through Canara Bank Employee Share Purchase Scheme (Can Bank-ESPS) amounting to a maximum of Rs 10 billion," the bank said in a regulatory filing.

The capital is to be raised in one or more tranches subject to mandatory/regulatory approvals from various agencies, including the government.

The government in March 2017 had allowed public sector banks to offer stock options to their employees, aimed at retaining experienced hands and better incentives besides a means of capital raise.

Punjab National Bank, Allahabad Bank and United Bank have already announced their plans under employee stock option schemes.

Shares of Canara Bank closed 2.14 per cent down at Rs 247.50 apiece on BSE.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel