Indian Overseas Bank (IOB) has received an approval to raise capital of Rs 2,000 crore with an option to retain oversubscription up to Rs 600 crore aggregating to Rs 2,600 crore as capital by way of issue of perpetual bonds (Additional Tier I Bonds) at appropriate time in one or more tranches on private placement basis depending upon the market conditions. The board of directors at their meeting held on December 05, 2014 has approved for the same. The bank is in the process of getting approval from Government of India to raise capital by way of AT1 bonds and is taking necessary steps in this regard.
The bank has reported a net loss of Rs 245.51 crore for second quarter ended September 30, 2013 as compared to a net profit of Rs 132.55 crore for the same quarter in the previous year. Total income of the bank has increased by 7.35% at Rs 6440.77 crore for quarter under review as compared to Rs 5999.75 crore for the quarter ended September 30, 2012.
Gross non-performing assets (NPAs) increased to 7.35% in the July-September quarter as against 4.65% in the same quarter previous year, while net NPAs stood to 5.17%.
