IOB urges government for Rs 2,100 crore capital infusion
Date: 24-09-2013Indian Overseas Bank (IOB) is seeking capital infusion of Rs 2,100 crore from Ministry of Finance to meet tier I capital requirement under Basel III norms for FY14. Moreover, the bank's request for capital fund is under the government’s consideration.
The bank has received its board’s approval to raise capital by way of issue of equity share of Rs 10 each at a price determined under the regulations, to the GOI under preferential allotment to the extend of its capital infusion. Besides, the bank has also received permission to issue equity shares to Qualified Institutional Buyers through private placement to meet the shortfall in Tier I capital requirements.