Indian Overseas Bank's IPO at par on
Sept 25

The state-owned Indian Overseas Bank on Wednesday announced an initial public offer of Rs 1.11 billion to shore up its capital base and meet future expansion needs.

A statement from the bank said the issue of equity shares of will be at par value of Rs 10 and will open on September 25.

Post issue, the government's equity in the bank will fall to 75 per cent from the current 100 per cent, it said.

The bank has forecast a gross profit of Rs 2.5 billion in 2000-01 (April-March), up from Rs 1.88 billion in the previous year.

The bank's deposits stood at Rs 243.18 billion as at March 31, 2000, while advances were Rs 115.73 billion.

The bank's capital adequacy ratio was 9.15 per cent at end-March, and its ratio of net non-performing advances or bad loans dropped to 7.65 per cent, the statement said.

The ratio refers to the amount of capital commercial banks have to set aside equal to the percentage of assets judged to be at risk.

Indian banks have to raise their capital adequacy ratio from 9 per cent to 10 per cent by March next year.

Bankers foresee more state-run banks tapping markets in coming months as the government has ruled out fresh infusion of funds.

Back to top

(c) Copyright 2000 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Tell us what you think of this report