Indian Overseas Bank (IOB) on Wednesday said its shareholders have approved a proposal to raise up to ₹4,000 crore in equity capital through various instruments, including QIPs, rights issues, and employee share schemes.The approval came during the bank’s 25th Annual General Meeting (AGM) held on July 2 via video conferencing. The special resolution was passed with an overwhelming majority, as per the scrutiniser’s report filed with exchanges.
The capital raise will be executed during the financial year 2025–26 in one or more tranches, the bank said. The issue may be structured through qualified institutional placements (QIP), follow-on public offers (FPO), rights issues, preferential allotments to institutional investors such as LIC and mutual funds, or under SEBI-regulated employee share benefit schemes.
As part of this capital raising programme, the bank also received shareholder nod to issue equity shares worth up to ₹4,000 crore to permanent employees under the IOB-ESPS 2025–26.
Also Read: PNB Housing Finance plans to raise up to ₹10,000 crore via NCDsAll eight resolutions proposed at the AGM—including the adoption of the FY25 annual report, appointment of directors, and appointment of the secretarial auditor—were passed with the requisite majority.
The capital raise will be executed during the financial year 2025–26 in one or more tranches, the bank said. The issue may be structured through qualified institutional placements (QIP), follow-on public offers (FPO), rights issues, preferential allotments to institutional investors such as LIC and mutual funds, or under SEBI-regulated employee share benefit schemes.
As part of this capital raising programme, the bank also received shareholder nod to issue equity shares worth up to ₹4,000 crore to permanent employees under the IOB-ESPS 2025–26.
Also Read: PNB Housing Finance plans to raise up to ₹10,000 crore via NCDsAll eight resolutions proposed at the AGM—including the adoption of the FY25 annual report, appointment of directors, and appointment of the secretarial auditor—were passed with the requisite majority.
Shareholders also approved the continuation of three government-nominated directors — B. Chandra Reddy, Deepak Sharma, and Suresh Kumar Rungta — each for a term of one year from April 11, 2025. These appointments are part of routine board composition updates made in consultation with the Department of Financial Services.
The meeting was attended by key executives including MD & CEO Ajay Kumar Srivastava, and senior Finance Ministry officials such as Shri Jitendra Asati, Director, Department of Financial Services.
The bank is expected to use the additional capital to fuel growth across its retail, SME and corporate lending segments, as well as to scale up digital banking capabilities.
