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Indian Overseas Bank plans to raise ₹1,000 cr via QIP

August 08, 2022

Indian Overseas Bank plans to raise ₹1,000 cr via QIP
State-run Indian Overseas Bank (IOB) has said that it will be raising around ₹1,000 crore through qualified institutional placements (QIP) to sustain business growth.

The bank has posted a 20 per cent rise in net profit for the first quarter of the current financial year to ₹392 crore, compared with ₹327 crore in the April-June quarter of 2021-22, owing to a dip in bad loans.

“The bank board has already decided to raise around ₹1,000 crore under CET (common equity tier). I think this will make our position comfortable for the next one-and-a-half years,” said Partha Pratim Sengupta, managing director and chief executive officer, IOB.

He added that the money will be raised to sustain the business growth. “We are planning a QIP now. We have decided that we should not be much aggressive on any segment, so the growth will be focused on all segments RAM and corporate,” he said.

During the quarter under review, the bank’s total income dipped to ₹5,028 crore as against ₹5,607 crore during the April to June quarter of 2021-22. In the April-June quarter of 2022-23, the bank’s gross non-performing assets (NPA) reduced to ₹14,769 crore with a ratio of 9.03 per cent as against ₹15,952 crore with a ratio of 11.48 per cent during the same quarter last fiscal.

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