Syndicate Bank to raise up to Rs 500 cr by issuing shares to its employees

State-owned Syndicate Bank Wednesday said it would raise up to Rs 500 crore by issuing shares to its employees under the employee stock purchase scheme. A meeting of the committee of directors on employee stock purchase scheme (ESPS) -- Compensation Committee -- is scheduled to be held on January 7 to consider, finalise and approve the Syndicate Bank Employee Stock Purchase Scheme, the bank said in a regulatory filing.

The bank said it would "raise equity share capital up to Rs 500 crore by creating, granting offer, issuing and allotting up to 30,00,00,000 new equity shares of face value of Rs 10 each to the eligible employees of the bank."

Another public lender Vijaya Bank in a separate filing said its board of directors at a meeting held on Wednesday approved the issuance of up to 5 crore fresh equity shares to its employees in one or multiple tranches under Vijaya Bank ESPS.

The scheme is to be finalised by the ESPS committee of the board, it added. The stock of Syndicate Bank closed 1.64 per cent down to Rs 39.10 apiece on the BSE; Vijaya Bank closed 0.29 per cent up at Rs 51.05 per share on the BSE.

(With inputs from agencies.)