Indian Overseas Bank to allot equity shares to GoI on preferential basis

The PSU bank said its board on 12 April 2021 approved issuing equity shares by the bank on preferential basis to the Government of India for the capital infusion of Rs 4100 crore received during Financial Year 2020-21.

The bank will convene extraordinary general meeting (EGM) of shareholders on 12 May 2021. At the EGM, the bank will shareholders' approval to issue 246.54 crore equity shares at Rs 16.63 each to the Government of India on preferential basis.

The Government of India held 95.84% stake in Indian Overseas Bank as on 31 December 2020.

The public sector bank posted a net profit of Rs 212.87 crore in Q3 FY21 as against net loss of Rs 6,075.49 crore in Q3 FY20. The bank's total income jumped 11.3% to Rs 5,786.54 crore in Q3 FY21 from Rs 5,197.94 crore in Q3 FY20.

The scrip jumped 6.83% to currently trade at Rs 17.20 on the BSE. It traded in the range of 16.35 and 17.60 so far during the day.

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