Public sector lender Indian Overseas Bank aims to strengthen capital base with fresh fundraising
CHENNAI (Economy India): Public sector lender Indian Overseas Bank (IOB) has announced plans to raise Rs4,000 crore during the current financial year 2024–25. The fundraising will be carried out through multiple avenues, including Qualified Institutional Placement (QIP), according to the bank’s Managing Director and CEO Ajay Kumar Srivastava.
Speaking at an industry event, Srivastava said the funds are intended to support the bank’s growth strategy, maintain adequate capital buffers, and comply with regulatory requirements under Basel III norms.
He added that IOB’s financial health has significantly improved in recent years due to better asset quality, strong provisioning, and a sharper focus on retail and MSME lending. “The bank is now poised for expansion, and this capital raise will fuel our plans for digitization, loan portfolio diversification, and network expansion,” he said.
In FY24, IOB had reported a healthy rise in net profit and saw a decline in non-performing assets (NPAs), reflecting improved operational performance. The bank’s capital adequacy ratio is also in line with regulatory norms, and the proposed capital infusion will further strengthen its balance sheet.
IOB’s fundraising plan comes at a time when several public sector banks are shoring up capital to meet growing credit demand, implement tech-driven banking solutions, and prepare for future risks.
The fundraising will be executed in tranches depending on market conditions and investor response. Srivastava emphasized that the bank is optimistic about market sentiment and confident of achieving its capital raising target within the stipulated time.
With the capital infusion, Indian Overseas Bank aims to play a more active role in credit delivery, infrastructure lending, and digital banking transformation in the coming years.
(Economy India )
