Indian Overseas Bank (IOB) is likely to raise $500 million through the issue of medium term notes in 3-6 months. It is planning to utilize this money to fund the bank’s overseas operations. IOB will also require capital to fund its growth needs this fiscal.
The bank also plans to raise this fund partly through plugging back of profits and partly by way of government funding. The bank is waiting for license for the up gradation of its representative offices in China, Vietnam and Dubai. Overseas business accounts for about 10% of its revenues and 22% of its profits.
The Bank had reported a fall of 53.26% in its net profit of Rs 108.27 crore for the quarter ended December 31, 2011 as compared to Rs 231.66 crore for the same quarter in the previous year. Total income has increased by 45.25% from Rs 3452.86 crore for Q3FY11 to Rs 5015.33 crore in the quarter under review.
