IOB to raise USD 500 million through overseas bond sale

State-owned lender Indian Overseas Bank (IOB) announced here today that it plans to raise USD 500 million through a medium-term bond sale shortly.
The bank has already received approval to raise up to USD 1 billion from its board.
"Currently, the market is very right. So, when we see good appetite from corporates, we will raise USD 500 million out of our medium term note programme," Indian Overseas Bank's outgoing Chairman and Managing Director M Narendra, who retires tomorrow, told reporters here.
He said that the bank would require Rs 3,500 crore as fresh capital during the current fiscal.
"We have asked some amount from the government also. Last year, we got Rs 1,200 crore from the government and we hope this year we get a similar amount," Narendra said.

The bank also plans to raise some funds through Qualified Institutional Placement, but its timing and amount would be decided after government and Reserve Bank approvals.
In the quarter ended June, the bank's net profit more than doubled to Rs 271.72 crore from Rs 125.80 crore. Total income was tad up at Rs 6,284.69 crore compared to Rs 6,187.15 crore in the year-ago quarter.
Gross NPAs stood at 5.84 per cent as against 4.45 per cent, while net NPA increased to 3.85 per cent from 2.81 per cent in the year-ago period. Provision coverage ratio as on June 30 stood at 52.85 per cent.