July 2021 \ Business & Investment \
Rs 831 crore net profit for IOB

Indian Overseas Bank (IOB) plans to raise additional ...

Indian Overseas Bank (IOB) plans to raise additional funds from a follow-on equity issue and Rs.1,000 crore by issue of bonds. The bank closed last fiscal (2020-21) with a net profit of Rs. 831 crore as against a net loss of about Rs. 8,527 crore the previous year. The total income for the year ended 31.03.2021 stands at Rs. 22,525 crore as against Rs. 20,766 crore for FY20. In a regulatory filing in June, IOB said its Board has approved the issue of 125 crore equity shares at an appropriate premium to the public by way of follow- on public offer/rights issue with or without participation of Government of India. The Board also decided that the issue could also be to qualified institutional buyers, employee shareholders, issue on preferential basis to insurers and mutual funds. The bank Board also approved the issue of Basel III compliant tier II bonds up to Rs.1,000 crore in one or more tranches on private placement or public issue. On 31.03.2021, IOB had received Rs. 4,100 crore as capital infusion by the Government of India at an issue price of Rs.16.63 per equity share of Rs.10 each. According to IOB, it plans to come out of Prompt Corrective Action by focusing on loan recovery, low cost deposits and less capital consuming advances.

Tags: IOB

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