Indian Overseas Bank to augment capital
IOB is planning to augment capital, through one of the following options - rights issue, preferential issue, qualified institutional issue or on a private placement basis.
By Sangeetha Kandavel, ET Bureau | Updated:
CHENNAI: State-run Indian Overseas Bank ( IOB) is planning to augment capital, through one of the following options - rights issue, preferential issue, qualified institutional issue or on a private placement basis. The bank will issue up to 18.03 crore shares in the process (the current total number of shares outstanding is 62 crore shares).
“In view of certain expansion plans of the bank, the implementation of BASEL II norms and consequent capital charge, there is a need to increase the capital,” IOB said in a recent notice to shareholders.
The capital adequacy of the bank stands at 13.08%. The Government of India currently owns 65.87% of the bank. Going by the shareholding pattern, the bank can dilute up to a 14.87% stake.
In March, the government infused Rs 1,054 crore into the bank through issue of equity shares on a preferential basis. At 1312 hours, IOB stock was up 1.62% to Rs 147.80.
“In view of certain expansion plans of the bank, the implementation of BASEL II norms and consequent capital charge, there is a need to increase the capital,” IOB said in a recent notice to shareholders.
The capital adequacy of the bank stands at 13.08%. The Government of India currently owns 65.87% of the bank. Going by the shareholding pattern, the bank can dilute up to a 14.87% stake.
In March, the government infused Rs 1,054 crore into the bank through issue of equity shares on a preferential basis. At 1312 hours, IOB stock was up 1.62% to Rs 147.80.
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