Indian Overseas Bank to raise $500 million this fiscal

Indian Overseas Bank (IOB) is likely to raise $500 million this fiscal to fund its business growth overseas. The funding will be through a Medium Term Note (MTN) programme, which is basically a debt instrument with a maturity of 5-10 years.

IOB's overseas operations had recorded 40% growth in 2011-12 as certain markets abroad had provided ample growth opportunities for the bank. It was eyeing a 20% growth in credit in 2012-13, higher than the 16% growth guidance given by the Reserve Bank of India. In 2011-12, its advances grew 26%.

Indian Overseas Bank has reported a 21.76% jump in its net profit for the fourth quarter ending March 31, 2012 at Rs 528.81 crore, compared to the year-ago period. The total income of the city-headquartered bank in the January-March quarter rose by 38.26% to Rs 5,415.09 crore as against Rs 3,916.58 crore during the same period of previous year.