Indian Overseas Bank, a Chennai-headquartered bank is planning to raise Rs 413 crore, through issuance of 41.3 crore shares of the face value of Rs 10 each, either through fresh equity, rights issue, preference shares or qualified institutional placement. With this initiative, the bank plans to mop up funds before the end of the current financial year to comply with the capital adequacy norms, considering its business growth.
The public sector lender has received shareholders’ nod to mobilize the fund. The bank aims to grow at 14%, which will necessitate an additional capital funds of Rs 2,300 crore by the end of the year, to take the tier-I capital adequacy ratio to 8% from the current 7.8%.
