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Public sector bank Indian Overseas Bank (IOB) has requested the Ministry of Finance to infuse a capital fund to the extent of Rs 2,100 crore to the bank to meet tier I capital requirement under Basel III norms, for the fiscal year.
IOB, in an announcement today said, "We have requested Government of India (GOI), Ministry of Finance, Department of Financial Services to infuse capital fund to the bank to meet Tier I Capital under Basel III norms to an extent of Rs 2,100 crore for the current year".
It added the government has informed the Bank that its request for capital fund is under the government's consideration.
The Board of Directors of the bank has today given its permission to raise capital by way of issue of equity share of Rs 10 each at a price determined under the regulations, to the GOI under preferential allotment to the extend of its capital infusion.
Besides, permission was also granted to the Bank to issue equity shares to Qualified Institutional Buyers through private placement to meet the shortfall in Tier I capital requirements of Rs 2,100 crore assessed by the Bank and the actual capital infusion by the government.
It further added that the exact amount of Government's capital infusion and the quantum and size of issue of QIP would be known only in due course.
