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.
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.