IOB8217;s Rs 111-cr issue opens on Sept 25

Chennai,September 1: Indian Overseas Bank IOB will tap the capital market with a Rs 111.20 crore issue which will open on September 25. The offer will consist of 11.12 crore shares face value of Rs 10 at par. The government holding in the bank will come down to 75 per cent from the current 100 per cent after the issue. The particulars were divulged by R V Shastri, chairman and managing director of the bank at a news conference here.

The issue proceeds will help to shore up the capital adequacy of the bank, which currently stands at 9.15 per cent as against the mandatory requirement of 9 per cent. Also, it would help in meeting future capital adequacy ratio which would be higher.

The paid-up capital of bank would increase to Rs 444.80 crore from the current Rs 333.60 crore after the issue. The issue has been priced at par to reward the investors, said Mr Shastri. The book value per share stands at Rs 17. The bank would approach all those it is associated with to mobilise the required resources.

The Chennai-based bank has 1,422 branches including six abroad. The total deposits stood at Rs 24,318 crore while the total advances was at Rs 11,573 crore as on March 2000. The net non performing assets was at Rs 885 crore and constituted 8.65 per cent of the total advances.