Indian Overseas Bank seeks Rs 1,500 cr capital

Indian Overseas Bank (IOB) said it would require around Rs 1,500 crore recapitalisation support from the government in the current fiscal. "We find a gap of around Rs 1,500 crore apart from ploughing back of profits for the current year and we expect the government will continue support like the previous year," IOB Chairman and Managing Director M Narendra said here today on the sidelines of banking conclave 2012 organised by FICCI. 
He added that there is no concrete plan on alternate methods of raising capital in case the government did not fulfil the Rs 1,500 crore demand. The bank has taken shareholders approval to raise a little over Rs 401 crore. It has various options, including Qualified Institutional Placement ( QIP), to raise the money. Speaking about the proposed $500 million issue of MTN, Narendra said, "We will do it shortly and will initiate it after State Bank does in it August." MTN are medium term notes or loans in foreign currency deployed to Indian firms for overseas investment activities. The bank is aiming at Rs 4,00,000 crore business with growth target of 18-20 per cent in advances and deposits. IOB would continue to pursue overseas expansion and is planning presence in Vietnam along with Bank of India.