Money & Banking

Govt hikes authorised capital of IOB by ₹5,000 cr

Chennai | Updated on July 31, 2019 Published on July 31, 2019

The authorised capital of Indian Overseas Bank has been increased by ₹5,000 crore from ₹10,000 crore to ₹15,000 crore

The Central government, after consultation with the Reserve Bank of India, has increased the authorised capital of the Chennai-headquartered bank through a gazette notification, according to a statement.

The move will enable the bank 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 bank’s board has 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 July 10, the statement added.

IOB hopes to come out of the PCA framework this year due to various initiatives undertaken as part of the turnaround strategy. The bank was brought under the PCA (prompt corrective action) programme by the RBI in September 2015 after reporting high NPAs.

Published on July 31, 2019
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