Indian Overseas Bank (IOB) has received shareholders’ approval to raise capital up to Rs 1,200 crore by way of Qualified Institutional Placement (QIP). The company will raise the same for the implementation of Basel III norms, and consequent capital charge and there is a need to increase the capital to further strengthen the Capital Adequacy Ratio.
The Capital Adequacy Ratio (CAR) of the Bank as on March 31, 2014, as per Basel III is 10.78 per cent, well above the nine per cent stipulated by the Reserve Bank of India (RBI).
IOB reported over four fold jump in its net profit at Rs 268.33 crore for the quarter as compared to Rs 58.87 crore for the same quarter in the previous year. Total income of the bank increased 9.79% at Rs 6,475.93 crore for quarter under review, as compared to Rs 5,898.15 crore for the quarter ended March 31, 2013.
