Modi 2.0 government hikes Indian Overseas Bank authorised capital by Rs 5,000 crore

The Central Government, after consultation with Reserve Bank of India, has increased the authorised capital of the Bank by Rs 5,000 crore from Rs 10,000 crore to Rs 15,000 crore through Gazette Notification. The increase in authorised capital will enable the Bank to take steps to shore up its capital adequacy by way of issue of share capital including in case of further capital infusion by the Government.

The Indian Overseas Bank informed about the development in a written press statement citing, "The Bank’s Board of Directors have approved issue of  equity capital during 2019-20 to a maximum extent of 300 crore equity shares with appropriate premium by way of public issue, rights issue, shares to employees, preferential issue and by way of QIP. The shareholders of the Bank have also accorded their approval for the same at the recently held Annual General Meeting held on 10th July 2019."

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For information to the readers, Indian Overseas Bank is one of the leading Public Sector Bank established in the year 1937 headquartered in Chennai with a strong domestic presence of 3280 Branches & 3450 ATMs as of Mar 31, 2019. 57% of Branches catering to the needs of Rural and Semi-Urban centers enhancing deeper Financial Inclusion. IOB is a strong brand that enjoys the trust of over 36 million active customers. As of March 31, 2019, the Bank had a total business of Rs. 3,74,530 crores with Deposits of Rs. 2,22,534 crores and Advances of Rs. 1,51,996 crores.