Indian Overseas Bank to raise Rs 4,000 cr in Q4

Chennai, Jan 14 (PTI) Public sector Indian Overseas Bank would go to the capital market to raise Rs 4,000 crore during the current quarter, a top official said on Wednesday.

The city-headquartered bank has received approvals from the Board to raise Rs 4,000 crore in this financial year, Managing Director and CEO Ajay Kumar Srivastava said.

"See, about fundraising, Rs 4,000 crore is already in the public domain. It is approved by the Board in this financial year. We have got all the approvals. In this quarter, we are planning to go to the (capital) market to raise," he told reporters.

To a query, he said, "Maybe next month or March we will raise. It depends on the atmosphere prevailing in the capital market. So, Rs 4,000 crore approval is there on the table. It will be raised through QIP (Qualified Institutional Placements)," he said.

With the fund raise, the government's stake in the bank would dilute by 4 per cent, he said in response to another query.

Asked whether the bank's outlook for the year was on track, he said, "Whatever guidance we had told in the first quarter (of current financial year 2025-26), we have exceeded that. Earlier, the growth was 13-14 per cent as per the guidance. Now, we have grown by 24 per cent." Indian Overseas Bank reported a 56.2 per cent jump in net profit at Rs 1,365 crore for the third quarter ending December 2025 as bad loans reduced and core business improved.

The bank had earned a net profit of Rs 874 crore in the same quarter a year ago.

Total income increased to Rs 9,672 crore during the quarter under review from Rs 8,409 crore in the same period of last financial year, he said.

Total business of the bank rose 18.7 per cent to Rs 6.44 lakh crore as compared to Rs 5.42 lakh crore at the end of the third quarter of the previous financial year. PTI VIJ VIJ ROH