Indian Overseas Bank To Raise Rs 6,000 Crore Via Multiple Instruments
The funds will be raised in one or more tranches within a period of 12 months from the date of approval, it said.
Indian Overseas Bank have approved a fundraise of up to Rs 6,000 crore via debt and equity instruments. The bank will raise Rs 5,000 crore through follow-on public offer, rights issue, qualified institutional placement and preferential issue, according to an exchange filing on Monday.
The funds will be raised in one or more tranches within a period of 12 months from the date of approval, it said. It will also require the necessary approval from Government of India and shareholders.
The Chennai-based public sector bank will also raise tier-2 capital by issue of BASEL III Compliant Tier II bonds of Rs 1,000 crore, in one of more tranches within 12 months of the approval, it said.
Ajay Kumar Srivastava, managing director and chief executive officer of the bank, informed PTI that they plan to open 88 new branches in the current year.
"This bold expansion initiative underscores the bank's unwavering dedication to offering comprehensive financial services, thereby fostering economic vibrancy and inclusivity in communities spanning the length and breadth of the nation," he said.
Shares of Indian Overseas Bank closed 3.80% higher at Rs 63.58 apiece, as compared with a 0.77% rise in the benchmark BSE Sensex.