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Investegate |Axis Bank Ltd Announcements | Axis Bank Ltd: RECLASSIFICATION TO PUBLIC CATEGORY FROM PROMOTER
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IDBI Bank is planning to set off accumulated losses of about Rs 44,500 crore against the balance standing to the credit of the Securities Premium Account (SPA) after the declaration of its fourth quarter (Q4FY21) financial results.
According to the Draft Scheme for setting off accumulated losses as on April 01, 2021 against SPA, this balance sheet neutral exercise of re-arrangement of liabilities will enable the bank to represent its true financial position. It will also help the bank to raise resources via AT (Additional Tier) 1 Bonds in the near future as it will become eligible to make coupon payments.
Further, this will place the bank in a better position to achieve its turnaround plan (including coming out of the so-called prompt corrective action/PCA) in a time-bound manner. The bank would also be able to pay the dividend as per the applicable provisions within a reasonable time-frame.
Maharashtra Urban Cooperative Banks Federation Chairman Vidyadhar Anaskar who doubles as the Chairman of Pune based Vidya Sahakari Bank has prepared a model draft proposal for UCBs for amending their Bye laws for constituting Board of Management.
Meanwhile, the draft has been submitted to the Reserve Bank of India for their approval. After the approval any UCB can adopt this without getting it approved by RBI.
In a telephonic communication with Indian Cooperative correspondent, Anaskar said, in a recent meeting held with top officials of RBI at Mumbai, we had informed them that despite extension of the deadline for constituting BoM I think it is not possible for RBI to approve the draft of each bank within six months. So, I suggested to them that Vidya Bank had prepared a model draft and submitted it to RBI for approval which could be replicated by other banks. The latter could do without framing their own”, he added.
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