IOB expects capital infusion of up to Rs 1,450 cr from Govt

Last Updated: Tue, Nov 01, 2011 11:35 hrs

State-run Indian Overseas Bank is expecting a capital infusion of up to Rs 1,450 crore from the Government by February 2012, a top official said here today.

"We have made a request to the Government and will be requiring up to Rs 1,450 will come this fiscal itself," the bank's Chairman and Managing Director M Narendra told reporters here.

Fall of an Indian Idol

He, however, declined to comment when asked about the route the bank will adopt for the proposed capital infusion.

When pointed out about the trouble its public sector peer State Bank of India is facing for getting a go-ahead for its rights issue, Narendra said he is confident of getting the fund infusion "by January or February".

State Bank of India, the country's largest lender, had initially announced its intention of raising Rs 20,000 crore through a rights issue, which would have required the Government to shell out Rs 14,000 crore to maintain its stake.

In Focus: Asia's richest families - three are Indian

IOB's core tier-I capital stood at 7.02 percent as on September 30 and the Government has made it clear earlier that it will ensure a tier-I component of 8 percent in all banks.

The Chennai-headquartered bank had raised Rs 1,053 crore from the Government last fiscal, which saw the state's stake go up to 66 percent.

Narendra said the earlier infusion had also come in the last quarter and similarly, he expects an allocation to come in by the end of the current fiscal as well.

More from Sify: