Board Approval Secured for QIP Issue
Public sector lender Indian Overseas Bank has confirmed plans to approach the capital markets to raise ₹4,000 crore during the current quarter. The proposed fundraise has already received approval from the bank’s Board and is scheduled within the ongoing financial year.Managing Director and Chief Executive Officer Ajay Kumar Srivastava said the bank has completed all necessary internal approvals and is now preparing to tap the markets.
Fundraising Likely Through Qualified Institutional Placement
The capital raising will be carried out through Qualified Institutional Placement. The timing of the issue will depend on prevailing market conditions, with the bank indicating that the transaction could take place as early as next month or by March.Following the proposed fundraising, the government’s shareholding in the bank is expected to dilute by about 4 percent.
Growth Guidance Exceeded in FY26
Commenting on the bank’s performance outlook, the management said that Indian Overseas Bank has exceeded the growth guidance shared during the first quarter of FY26. While the initial guidance had projected growth of 13 to 14 percent, the bank has now recorded growth of 24 percent.Strong Q3 FY26 Financial Performance
Indian Overseas Bank reported a strong performance for the quarter ended December 2025, with net profit rising 56.2 percent year on year to ₹1,365 crore. The improvement was driven by a reduction in bad loans and better core business performance.In the corresponding quarter of the previous year, the bank had posted a net profit of ₹874 crore.
Income and Business Expansion
Total income for the December quarter increased to ₹9,672 crore, compared with ₹8,409 crore in the same period last year. The bank’s total business also showed robust growth, rising 18.7 percent to ₹6.44 lakh crore, up from ₹5.42 lakh crore at the end of the third quarter of the previous financial year.The latest performance highlights Indian Overseas Bank’s improving financial position as it prepares to strengthen its capital base through the upcoming market fundraise.
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