Indian Overseas Bank plans 5,000cr QIP amid 18,000cr loan requests
Indian Overseas Bank (IOB) is gearing up for a big wave of corporate loan requests, about ₹18,000 crore worth.
In just the last six months, they have already handed out ₹20,000 crore in loans to businesses.
To keep up with this momentum, IOB's Managing Director and CEO Ajay Kumar Srivastava says the bank plans to raise ₹5,000 crore through a qualified institutional placement (QIP) by the end of the third quarter or early fourth quarter.
IOB expects margin improvement, seeks $500m
With the recent Reserve Bank of India (RBI) rate hike, IOB expects a modest improvement in its margins since nearly one-half of its loans are tied to those rates.
The bank is also working on raising $500 million through overseas borrowing by December.
Even though IOB's share price has declined more than 28% over the past year, it still has a market cap of over ₹55,500 crore.