IOB to raise Rs 1,000 crore via various routes

Indian Overseas Bank (IOB) is planning to raise Rs 1,000 crore through a Qualified Institutional Placement (QIP), public issue, rights issue, preferential issue. The proposed fund raising is in view of certain expansion plans of the bank, the implementation of Basel III norms, and consequent capital charge and there is a need to increase the capital to further strengthen the Capital Adequacy Ratio. Moreover, the bank will also raise around $500 million through medium-term notes (MTN). In March 2014, the bank raised Rs 398.04 crore from Life Insurance Corporation through preferential basis. The fund-raising was primarily to augment long term resources and maintain a Tier I capital adequacy ratio of desired level. IOB reported over four fold jump in its net profit at Rs 268.33 crore for the quarter as compared to Rs 58.87 crore for the same quarter in the previous year. Total income of the bank increased 9.79% at Rs 6,475.93 crore for quarter under review, as compared to Rs 5,898.15 crore for the quarter ended March 31, 2013.