Tuesday 11 February 2014

IOB plans to raise Rs 400 crore by selling shares to LIC

Indian Overseas Bank (IOB), the public sector bank is planning to raise Rs 400 crore by selling shares on preferential basis to Life Insurance Corporation (LIC). The bank is holding an extraordinary general meeting on February 26, 2014 to get the approval of shareholders. The bank will issue and allot up to 8.15 crore of Rs 10 each shares at an issue price of Rs 48.84 per share aggregating to Rs 398.05 crore.

Earlier, the bank had received Rs 1,200 crore from the government as part of capital infusion plan for public sector banks for the current fiscal. After this infusion, Government of India's holding in the bank has increased to 79.01%, from 73.80%.

Indian Overseas Bank has reported 35.56% fall in its net profit at Rs 75.07 crore for third quarter ended December 31, 2013 as compared to Rs 116.50 crore for the same quarter in the previous year. However, total income of the bank has increased by 5.87% at Rs 6190.26 crore for quarter under review as compared to Rs 5846.98 crore for the quarter ended December 31, 2012.

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