Syndicate Bank To Offer Shares To Employees At Discounted Rates

Public sector lender Syndicate Bank has proposed to launch Employee Share Purchase Scheme (ESPS) in the first week of March at discounted rates.

Discounts will range from 23 to 25 per cent, based on the employee status in the staff hierarchy, with the lower-grade employees getting the maximum discount. The bank hopes to mop up ₹500-600 crore through the scheme, said Mrutyunja Mahapatra, Managing Director and CEO of the bank.

Speaking to reporters here on Tuesday, he said the bank is expecting an early settlement of ₹18,000 crore of its stressed loans comprising more than 90 cases that are currently before the various National Company Law Tribunals (NCLT). The bank has also taken steps to bring its gross NPA below 12 per cent and net NPA below 6 per cent from the existing levels of 12.5 per cent and over 6 per cent.

To a question on capital infusion, he said the bank is adequately capitalised at the moment, with the government providing ₹3,956 crore for improving the capital base in three separate installments.

The bank also has the option to raise capital for business requirements, either through Tier-I bonds or rights issue.

All these options will be considered only after evaluating the performance after the completion of the current financial year, he said.