Indian Overseas Bank’s Board of Directors has approved a comprehensive capital plan for the financial year 2026-27, aiming to raise up to ₹5,000 crore. The plan includes raising equity capital through various methods such as Follow-on Public Offer (FPO), Rights issue, Qualified Institutional Placement (QIP), or Preferential issue. Additionally, the bank will offer 10 crore new equity shares of ₹10 each under the Employees Share Purchase Scheme (IOB-ESPS 2026-27), subject to necessary approvals.
In a strategic move, the bank also plans to issue BASEL III compliant Tier II Bonds up to ₹1,000 crore, which may include a green shoe option. These bonds could be issued domestically or overseas, either through private placement or public issue, depending on the requirement and subject to statutory approvals.
The Board has also decided to appropriate the bank’s accumulated losses as of 31st March 2026 from the Share Premium Account, contingent upon receiving the necessary statutory approvals.
Furthermore, the 26th Annual General Meeting (AGM) of the bank’s shareholders is scheduled for 7th July 2026 at 11:00 a.m. IST in Chennai. The AGM will be conducted through Video Conferencing/OAVM in line with the circulars issued by the Ministry of Corporate Affairs and SEBI.
The Board meeting, where these decisions were made, commenced at 2:30 p.m. and concluded at 5:15 p.m.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).