IOB to conduct EGM to allot shares worth Rs 1,551 crore to GoI

The central government has recently announced an allocation of Rs 3,101 cr by way of preferential allotment of equity to the bank

Indian Overseas Bank will be conducting an Extraordinary General Meeting (EGM) of shareholders of the Bank on September 15 to issue equity shares to the Government of India to raise Rs 1,551 crore, as part of Centre's plans to infuse funds into the public sector lender.

The central government has recently announced an allocation of Rs 3,101 crore by way of preferential allotment of equity to the bank, which is struggling with high non-performing assets (NPA). Almost 50 per cent of this amount, Rs 1,551 crore, is marked for immediate infusion, which would help the Bank to keep its capital adequacy ratio within the limits.

The Committee of Directors, in a meeting held on Tuesday, approved convening of the EGM, said a regulatory announcement of the Bank.