Indian Overseas Bank mulls FPO next fiscal
Raising money from public is on the cards. We plan to doit in the second or third quarter. We will go to the marketwith FPO.
First we have to go to our Board, we have to go to RBIand SEBI also ( for necessary approvals).
It is on the drawing board, but nothing has beenconcretised. But it is in our action for next year, he toldreporters at a press conference here. The centre recently increased IOB's authorized capitalfrom Rs 10,000 crore to Rs 25,000 crore.
The Government also infused Rs 4,360 crore capital intothe bank.
He said the Chennai-based lender is in the process ofimproving its performance in terms of controlling Non-performing Assets (NPA) and Net Interest Margin (NIM). The banks NIM is currently at about 1.94 per cent and isexpected to touch two per cent during the current quarter.
"It would take another three of four quarters to touchthe three per cent-NIM... We will prefer to go for FPO afterwe come out of PCA, he said.
The Reserve Bank of India's PCA framework, which intendsto nurse financially weak banks back to health, restrictslending and expansion of lenders. Srivastava said going forward the focus of the creditwould more for MSMEs and wants to be recognized as "MSME-focused bank".
He said currently the exposure to the sector is Rs 31,000crore and efforts are on to take it Rs 50,000 crore in thenext 18-24 months.IOB also classified 200 of its branches as "MSME-focused". GDK APRAPR APR
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