At meeting held on 12 June 2014
Indian Overseas Bank announced that the Bank has requested Government of India (GOI), Ministry of Finance, Department of Financial Services to infuse capital fund in the Bank to meet Tier I Capital under Basel III norms to an extent of Rs 3500 crore for the current financial year, 2014-15.The Bank also requested GOI, Ministry of Finance, Department of Financial Services for the dilution of their shareholding in the Bank.
Accordingly, the Board of the Bank at its meeting held on 12 June 2014, has considered and approved the following:
a. Bank's assessment of Capital requirement of Rs 3500 crore, under Tier I capital, for the Financial Year 2014-15.
b. The permission is accorded to the Bank to raise capital by way of issue of equity shares of Rs 10 each at a price determined by SEBI (ICDR) Regulations 2009, to GOI to the extent of their capital infusion.
c. The permission is also accorded to the Bank to issue equity shares of Rs 10 each to Qualified Institutional Buyers by way of Private Placement, up to an extent of not exceeding Rs 1200 crore (including the share premium) out of the shortfall in the Tier I Capital Requirement of Rs 3500 crore assessed by the Bank.
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