India’s state-run Syndicate Bank is set to raise nearly INR39.9bn ($626m) to expand its business as well as fulfil regulatory capital requirements.

In a regulatory filing, the bank stated that its board of directors is scheduled to meet on 2 February 2018 to approve the revised capital plan.

Earlier, the bank planned to raise INR35bn for the financial year 2017-18, of which nearly INR11.5bn has already been raised through qualified institutional placement (QIP).

The remaining equity capital may be raised through QIP/rights issue/follow on public issue and/or preferential allotment to LIC, Indian government or other financial institutions in one or multiple tranches based on the market conditions.

In a separate statement, Indian Overseas Bank stated that its shareholders have approved capital infusion plan for the current fiscal by way of a special resolution for utilisation of INR69.79bn.

Last week, the Government of India decided to infuse INR880bn ($13.86bn) capital in 20 public sector banks by the end of the first quarter of fiscal year 2019.

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The initiative is expected to facilitate growth and improve the performance of the banks.

Besides strengthening the banks, the new reforms are also expected to boost lending to small and medium enterprises and facilitate banking transactions with the retail customers.