Indian Overseas Bank to raise Rs 3500 crore for 3-year expansion

Indian Overseas Bank will be raising up to Rs 3,500 crore in core tier-I capital over the next three years to fund expansion.

“We will be needing roughly Rs 1,200 crore per annum for the next three years given the expansion plans which we have drawn up,” said the Chennai-headquartered bank’s executive director Nupur Mitra.

IOB chairman and managing director M Narendra said the bank had already written to the Central Government, which owns a 66 per cent stake, about its capital raising plan of up to Rs 1,400 crore for FY 12.

“In our annual general meeting, we passed an enabling resolution to the money. We are yet to finalise the route which we would adopt like a follow-on offer, institutional placement etc,” he said.

The bank’s total capital adequacy as on June 30 stood at comfortable 13.38 per cent, and it is targeting a credit growth of up to 22 per cent for the fiscal, Narendra added.