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Public sector Indian Overseas Bank would go to the capital market to raise ₹ 4,000 crore during the current quarter, a top official said on Wednesday.
The city-headquartered bank has received approvals from the Board to raise ₹4,000 crore in this financial year, Managing Director and CEO Ajay Kumar Srivastava said.
Also Read:Indian Overseas Bank Q3 Results: Net profit surges 56% to ₹1,365 crore; NII up 18%
"See, about fundraising, ₹4,000 crore is already in the public domain. It is approved by the Board in this financial year. We have got all the approvals. In this quarter, we are planning to go to the (capital) market to raise,” he told reporters.
To a query, he said, "Maybe next month or March we will raise. It depends on the atmosphere prevailing in the capital market. So, ₹4,000 crore approval is there on the table. It will be raised through QIP (Qualified Institutional Placements),” he said.
With the fund raise, the government’s stake in the bank would dilute by 4%, he said in response to another query.
Asked whether the bank’s outlook for the year was on track, he said, "Whatever guidance we had told in the first quarter (of current financial year 2025-26), we have exceeded that. Earlier, the growth was 13-14% as per the guidance. Now, we have grown by 24%.” Indian Overseas Bank reported a 56.2 per cent jump in net profit at ₹1,365 crore for the third quarter ending December 2025 as bad loans reduced and core business improved.
The bank had earned a net profit of ₹874 crore in the same quarter a year ago.
Also Read: Indian Overseas Bank cuts overnight MCLR by 5 bps
Total income increased to ₹9,672 crore during the quarter under review from ₹8,409 crore in the same period of last financial year, he said.
Total business of the bank rose 18.7% to ₹6.44 lakh crore as compared to ₹5.42 lakh crore at the end of the third quarter of the previous financial year.
The city-headquartered bank has received approvals from the Board to raise ₹4,000 crore in this financial year, Managing Director and CEO Ajay Kumar Srivastava said.
Also Read:Indian Overseas Bank Q3 Results: Net profit surges 56% to ₹1,365 crore; NII up 18%
"See, about fundraising, ₹4,000 crore is already in the public domain. It is approved by the Board in this financial year. We have got all the approvals. In this quarter, we are planning to go to the (capital) market to raise,” he told reporters.
To a query, he said, "Maybe next month or March we will raise. It depends on the atmosphere prevailing in the capital market. So, ₹4,000 crore approval is there on the table. It will be raised through QIP (Qualified Institutional Placements),” he said.
With the fund raise, the government’s stake in the bank would dilute by 4%, he said in response to another query.
Asked whether the bank’s outlook for the year was on track, he said, "Whatever guidance we had told in the first quarter (of current financial year 2025-26), we have exceeded that. Earlier, the growth was 13-14% as per the guidance. Now, we have grown by 24%.” Indian Overseas Bank reported a 56.2 per cent jump in net profit at ₹1,365 crore for the third quarter ending December 2025 as bad loans reduced and core business improved.
The bank had earned a net profit of ₹874 crore in the same quarter a year ago.
Also Read: Indian Overseas Bank cuts overnight MCLR by 5 bps
Total income increased to ₹9,672 crore during the quarter under review from ₹8,409 crore in the same period of last financial year, he said.
Total business of the bank rose 18.7% to ₹6.44 lakh crore as compared to ₹5.42 lakh crore at the end of the third quarter of the previous financial year.
