Indian Overseas Bank (IOB) has secured board approval to raise equity capital of up to ₹4,000 crore in FY2025-26. The fundraise may be executed through various instruments, including a Follow-on Public Offer (FPO), rights issue, Qualified Institutional Placement (QIP), Employee Stock Purchase Scheme (ESPS), or preferential allotment. The capital raise will be carried out in one or more tranches and remains subject to shareholder and regulatory approvals.
This move is part of the bank’s broader strategy to bolster its capital adequacy and support future growth. The proposed infusion of funds will help strengthen IOB’s balance sheet and create room for expanding credit in priority and growth sectors.
The board has also approved raising Tier II capital of up to ₹1,000 crore through Basel III-compliant bonds, with or without a green shoe option. These will be raised via private placement or public issue, either domestically or overseas.
IOB recently reported a 30% year-on-year jump in Q4 FY25 net profit to ₹1,051 crore, alongside a 13% rise in Net Interest Income (NII) and improved asset quality metrics.
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