Indian Overseas Bank-Increase of Authorised Capital
The Central Government, after consultation with Reserve Bank of India, has increased the authorised capital of the Bank by ₹5,000 crore from Rs. 10,000 croreto Rs. 15,000crore through Gazette Notification.
The increase in authorised capital will enable the Bank totake steps to shore up its capital adequacy by way of issue of share capital including in case of further capital infusion by the Government.
The Bank’s Board of Directors have approved issue of equity capital during 2019-20 to a maximum extent of 300 crore equity shares with appropriate premiumby way of public issue, rights issue, shares to employees,preferential issue andby way of QIP. The shareholders of the Bank have also accorded their approval for the same at the recently held Annual General Meeting held on 10th July 2019.
