Indian Bank said that it made requisite accounting entries setting off accumulated losses of Rs18,975.53 crore from the share premium account of the bank.
The bank informed exchanges that on November 30, 2020, a special resolution was passed by the shareholders of the bank approving “Appropriation of accumulated losses of Rs.18,975.53 crore from share premium account of the bank in the Extraordinary General Meeting (EGM), we have to inform you further that the bank on the date, with prior approval of Reserve Bank of India, has passed the requisite accounting entries setting off accumulated losses of Rs.18,975.53 crore from share premium account of the bank.
On November 30, at the extraordinary general meeting (EGM) the Bank approved the appropriation of accumulated losses of Rs 18,975.53 crore from the share premium account of the bank.
As per the opening balance sheet of Indian Bank, the amalgamated entity with Allahabad Bank, as of April 1, 2020, an amount of Rs 19,833.15 crore was standing to the credit of share premium account, as a result of earlier share issues, made at a premium.
Further, an aggregate amount of Rs 18,975.53 crore was outstanding as net accumulated losses under reserves and surplus of the amalgamated entity. Allahabad Bank had merged with the Indian Bank on April 1 and at that time Allahabad Bank carried accumulated losses of around Rs 19,000 crore.
Padmaja Chunduru, MD & CEO, Indian Bank told the EGM that therefore, the bank proposed to utilise the amount standing in the share premium account for the purpose of setting off the accumulated losses.