Indian Overseas Bank (IOB) is planning to launch a financial services subsidiary in FY12, besides setting up exclusive branches to give gold loans. Simultaneously, it also looks to raise resources through medium-term notes. The bank has an approval from the Reserve Bank of India to start an NBFC and it will use this to offer a bouquet of products, including wealth management and other capital market services such as asset management and online broking.
To strengthen its capital base, the bank has asked for capital infusion from the government, which currently holds 61% of the bank’s equity. Depending on the amount of capital support that the government will offer, the bank plans to raise more capital through QIP. The bank has an approval to raise MYNs to fund its overseas business. Of this, it will raise $500 million by March 2011.crackcrack
