Bank of India has announced that the bank will raise money through Qualified Institutional Placement (QIP) of shares to meet credit requirement ahead of Basel II implementation.

The board of directors of Bank of India has decided to raise Tier I Capital by issue of up to 3,77,72,600 shares through the Qualified Institutional Placement (QIP) route. As per the Finance Ministry's approval, the placement would be made only with public sector enterprises and mutual funds, an official release said.

The Bank will arrange an Extraordinary General Meeting (EGM) on January 23, for obtaining the approval of the shareholders for the proposed QIP.

The Bank currently holds market cap worth Rs. 17585 crore and a PE Ratio of 12.59. The stock is fairly priced with an EPS of Rs 29.60 and BV of 117.89. The bank has registered a net profit of Rs 425 crore for the quarter ended September 2007 as against Rs. 212 crore in same quarter of last year.

The stock closed today at Rs. 361 on BSE, down by 2% with previous close of Rs. 368. It touched an intraday high of Rs 375 and low of Rs 357.