Indian Overseas Bank to raise Tier I capital through issue of Equity Shares for Rs. 3500 crore

Indian Overseas Bank have requested Government of India (GOI), Ministry of Finance, Department of Financial Services to infuse capital fund to the Bonk to meet Tier I Capital under Basel III norms to an extent of Rs. 3500 crore for the current financial year, 2014-15. The Bank have also requested GOI, Ministry of Finance, Department of Financial Services for the dilution of their shareholding in the Bank.
Accordingly the Board of the Company at its meeting held on June 12, 2014, has considered and approved the Bank's assessment of Capital requirement of Rs. 3500 crore, under Tier I capital, for the Financial Year 2014-15.

The permission is accorded to the Bank to raise capital by way of issue of equity shares of Rs. 10/- each at a price determined by SEBI (ICDR) Regulations 2009, to GOI to the extent of their capital infusion.

The permission is also accorded to the Bank to issue equity shares of Rs. 10/- each to Qualified Institutional Buyers by way of Private Placement, up to an extent of not exceeding Rs. 1200 crore (including the share premium) out of the shortfall in the Tier I Capital Requirement of Rs. 3500 crore assessed by the Bank.

Shares of INDIAN OVERSEAS BANK was last trading in BSE at Rs.84.9 as compared to the previous close of Rs. 85.35. The total number of shares traded during the day was 330585 in over 3080 trades.

The stock hit an intraday high of Rs. 85.8 and intraday low of 83.35. The net turnover during the day was Rs. 28079559.