J&K Bank to raise up to Rs. 4,500 cr capital through equity, debt

Public sector Jammu and Kashmir Bank is looking to raise up to Rs 4,500 crore through equities and debt, according to its annual report.

The bank will seek shareholders’ approval for the fund raise proposal in its annual general meeting to be held on September 28, 2020, the lender said in its Annual Report 2019-20.

The implementation of Basel III guidelines has necessitated the need for banks in India to augment their capital base.

This becomes important as Basel III capital requirements call for increase in quantity and quality of capital, besides providing for capital buffer during economic downturn, the lender said in its report.

In the light of the economic and business environment in India besides the downward pressures in the financial sector, increase in NPAs, slow growth in overall business variables, among others, the bank gauges the capital requirements for the near to medium term from time to time, it said.