Royal Bank of Scotland executives have defended plans for a £12 billion rights issue. They told shareholders at the bank's AGM that the 'decisive action' left the bank well placed to seize growth opportunities.
Executives at Britain's second-largest lender have come under fire from investors since plans for the record cash call emerged.
Many investors saw it as a radical U-turn for a bank which had long denied a need to shore up its balance sheet.
RBS brushed aside concerns over its management team, but leading shareholders have said chairman Tom McKillop, chief executive Fred Goodwin and the rest of the board would have to work to keep their backing, with some calling for a succession plan to be put in place.
'The time had come to take decisive action to rebase the capital,' Mr McKillop told shareholders. 'We're convinced the actions announced yesterday were in the best interests of shareholders.'
RBS says the record rights issue and planned sell-offs will help rebuild its capital reserves, which have been stretched by its part in last year's takeover of Dutch bank ABN AMRO and turmoil in financial markets in recent months.
