IOB to raise Rs 3,500 cr for expansion

Indian Overseas Bank (IOB) will be raising up to Rs 3,500 crore in core tier-I capital over the next three years to fund expansion. The bank’s total capital adequacy as on June 30 stood at comfortable 13.38 per cent, and it is targeting a credit growth of up to 22 per cent for the fiscal. The bank had already written to the Central Government, which owns a 66 per cent stake, about its capital raising plan of up to Rs 1,400 crore for FY12.

The bank’s net profit for the quarter ended June 2011 inched up over the same period last year to Rs 205 crore due to flat growth of higher provisioning on revised regulatory stance and migration of non performing assets (NPA) detection to system-based one. IOB’s net interest margin also narrowed down to 2.85 per cent from 3.11 per cent in March 2011 during the higher interest scenario.crackcrack