NEW DELHI: Canara Bank is set to raise about Rs 1,000 crore through an employee stock purchase scheme (ESPS), under which it will issue up to 6 crore equity shares to its staff.
According to officials, the bank has plans to raise Rs 7,000 crore during 2018-19.
"The board has decided to raise equity share capital up to Rs 60 crore ( i e up to 6 crore equity shares), through Canara Bank Employee Share Purchase Scheme (Can Bank-ESPS) amounting to a maximum of Rs 1,000 crore," the bank said in a regulatory filing. The funds are to be raised in one or more tranches subject to mandatory/regulatory approvals from various agencies, including the government.
It was only as late as March 2017, that the government 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.