INSUBCONTINENT EXCLUSIVE:
NEW DELHI: State-owned Oriental Bank of Commerce will issue up to 5 crore new equity shares to its employees under the employee stock
purchase scheme (ESPS).
The bank received the approval of shareholders at its extra-ordinary general meeting held Friday, it said in a
regulatory filing.
The remote e-voting held for the resolution approved with majority "to create, offer and issue up to 5 crore new equity
sharesunder employee stock purchase scheme (OBC-ESPS) in one or more tranches," it said.
The bank said the price has to be decided by the
board/committee for the equity share allotment to employees.
The government in March 2017 allowed public sector banks to offer stock options
to their employees, aimed at retaining experienced hands and better incentives besides a means for raising capital.
A number of public
sector banks, including Allahabad Bank, Union Bank, United Bank of India and Canara Bank, have availed the new scheme to raise funds by
issuing shares to their staff.
Syndicate Bank Thursday informed about raising Rs 500 crore through its ESPS by allotting 30 crore new shares
to its staff.
Earlier on December 13, Punjab National Bank (PNB) said it had mobilised Rs 500 crore through ESPS by issuing 10 crore shares
to its employees.
Shares of Oriental Bank of Commerce closed 0.53 per cent down at Rs 93.15 apiece on BSE.
