IOB receives Rs. 1200 cr from govt

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IOB receives Rs. 1200 cr from govt
Public sector lender Indian Overseas Bank on Tuesday said Government of India have proposed to infuse capital funds to the bank to the extent of Rs. 1200 crore and advised the bank to take all preparatory steps in this regard.

"Government of India - Ministry of Finance - Department of Financial Services have conveyed their decision to infuse capital funds to the Bank to the extent of Rs. 1200 crore and advised the Bank to take all preparatory steps in this regard," Indian Overseas Bank said in a filing to Bombay Stock Exchange.

Following the development, the Board of Directors of the Bank at its meeting held on November 11, 2013 has considered and approved to issue bank's equity shares of face value of Rs. 10 with premium on preferential basis to Government of India and LIC of India (under its various schemes) up to an amount of Rs. 1626 crore (including premium).

The board also proposed to issue perpetual bonds to the extent of Rs. 2497 crore and to authorize CMD to fix the size of the issue and finalize the terms and conditions including fixation of coupon rate depending upon the market conditions.

Further the Board also considered and approved the convening of an Extraordinary General Meeting (EGM) of shareholders of the Bank on December 16, 2013 at Chennai for obtaining approval from shareholders for the aforesaid proposal.

Dion Global Solutions Ltd.

Story first published: Tuesday, November 12, 2013, 12:58 [IST]
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