Indian Overseas Bank is planning to raise funds through a perpetual bond sale and is looking for approval from its board for the same. Perpetual bonds are quasi-equity in nature and are considered as part of the tier-I capital. This initiative is a part of its effort to ramp up the tier-I capital, which was below 8% at the end of the September quarter.
The bank has reported a fall of 23.63% in its net profit at Rs 158.43 crore for the quarter as compared to Rs 207.46 crore for the same quarter in the previous year. However, total income of the bank has increased by 14.36% to Rs 5515.04 crore for quarter under review as compared to Rs 4822.56 crore for the quarter ended September 30, 2011.
