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Thursday, August 29, 2013

IOB seeks Rs 2,100 cr capital infusion from Centre

Indian Overseas Bank (IOB) has sought capital support of Rs 2,100 crore from the government for enhancing its capital base.

“We have requested government to infuse Rs 2,100 crore so that our Tier-I capital reaches 8 per cent,” IOB Chairman and Managing Director M Narendra told PTI.

Tier-I capital or the equity capital of the bank stood at 7.80 per cent at the end of March 2013.

As of March 2013, the total capital funds of the bank stood at Rs 18,366 crore due to allotment of preferential shares to the government of India.

The bank got Rs 1,000 crore from the government last fiscal as part of recapitalisation package.

Earlier this year, Finance Minister P Chidambaram had said all public sector banks are meeting Basel III requirements for capitalisation, though four of them - Indian Overseas Bank, IDBI Bank, Bank of Maharashtra and Dena Bank - have Tier-1 capital below 8 per cent.

The government will take steps to ensure that these banks have 8 per cent Tier-1 capital by the end of the current fiscal year, Chidambaram had said.

Other lenders like Punjab National Bank have sought Rs 1,500 crore capital infusion by the government while Chennai-based Canara Bank has sought Rs 1,000 crore during the current fiscal.

Source: thehindubusinessline


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