IOB has sought Rs. 4,016-cr capital support from the central government

By Pradeep Yuvaraj | August 12, 2011

A recent press report said that Indian Overseas Bank (IOB) has sought capital support of Rs 4,016 crore from the Central Government in order to fund its business growth for the three-year period beginning 2011-12.

Mr. M. Narendra, Chairman and Managing Director, IOB, said that the request has been made in the three-year business plan submitted by the bank to the Finance Ministry. Of this Rs 4,016 crore, IOB has pegged the requirement for this fiscal at Rs 1,200 crore-Rs 1,400 crore.

He said that the bank is not looking to come out with any follow-on public offering (FPO) this fiscal, but is seeking capital infusion from the Government to fund its business growth. He added saying that the Government should have higher holding and use this opportunity to increase stake.

IOB’s loan book grew 41 per cent in 2010-11 compared with 6 per cent in 2009-10. The bank offers home loan, personal loan, car loans, gold loans, education loan etc.

Mr. Narendra said that he does not expect the current fall in business sentiments to persist for a prolonged period. He said that credit pick-up in India depends on seasonal factors and that the bank was going to soon enter into the busy season. He also said that there were other factors like enabling policy environment and international scenario that could influence credit demand.

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About Pradeep Yuvaraj

Pradeep Yuvaraj is a Co-Founder and Director at Finerva Financial Solutions Private Limited, a financial education company focused on personal finance education. He has penned over 250 articles relating to Personal Finance and clocked over 500 hours of educating individuals on managing personal finance. He is a serial entrepreneur and has been associated with 7 Start-ups. His entrepreneurial experience spans industries as varied as Education, Gas Engineering, Automobile Design, Software development and more recently a Pure play presentation design company. Prior to turning entrepreneur in 2005, he has worked for 3 of the top ten companies of the world - Shell, ExxonMobil and Total SA. This experience included handling Branch Operations, Channel Sales and Business Development across 5 states over a period of 8 years. He holds an MBA from Symbiosis and an Electronics Engineering Degree from the University of Pune.

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