Image Source: The Times of India
Jammu and Kashmir Bank has approved a ₹1,250 crore capital raising plan via QIP and Tier 2 bonds to enhance capital adequacy and support growth. The move awaits shareholder and regulatory approvals, aiming to strengthen the bank’s financial position and investor confidence.
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The Board of Directors of Jammu and Kashmir Bank Limited approved a significant capital raising plan during their meeting on November 26, 2025. The move is designed to strengthen the bank’s capital adequacy and support its future growth initiatives. The capital raise will be executed through two distinct routes: a Qualified Institutional Placement (QIP) and the issuance of Tier 2 bonds.
Notable Updates:
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The bank will raise up to ₹750 crore by issuing equity shares through QIP, subject to shareholder and regulatory approvals.
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Additionally, ₹500 crore will be raised by issuing Non-Convertible, Redeemable, Unsecured, Basel III Compliant Tier 2 bonds on a private placement basis, pending regulatory clearances.
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The equity raise may be executed in one or more tranches, providing flexibility in execution.
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These measures are expected to improve the bank’s capital adequacy ratio and investor confidence, supporting lending and expansion plans.
Major Takeaways:
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The total capital raise amounts to ₹1,250 crore, signaling a strong commitment to financial resilience.
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The QIP and Tier 2 bond issues are in line with regulatory requirements and strategic growth plans.
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The outcome is contingent on final approvals from shareholders and regulators.
Sources: Jammu and Kashmir Bank Official Circular, NSE Corporate Announcements
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