IOB drops $120mn GDR issue plan

Indian Overseas Bank (IOB) has shelved its proposal for $120 million global depository receipts (GDR) issue.

At its AGM held yesterday, IOB has decided not to proceed with the issue of 70 million equity shares through GDR route, saying "it is comfortably placed in the matter of capital adequacy to take care of the credit expansion envisaged in the near future."

The board of directors of IOB, at its meeting on March 03, 2005, had given in-principle nod to the GDR issue.

T R Narayanaswamy, who took charge as Chairman and MD of IOB last week, was not available for comment.

IOB was aiming to become the second PSU bank, after SBI, to list on overseas stock markets. The GDR issue would have brought down government's holding in the bank from the present 61.23% to 51%.