Indian Overseas Bank has announced its comprehensive Capital Plan for FY 2026-27, including plans to raise up to ₹5,000 crore via equity and ₹1,000 crore through BASEL III compliant Tier II bonds. Additionally, the bank will move to appropriate accumulated losses from its Share Premium Account. The bank also confirmed that its 26th Annual General Meeting is scheduled for July 7, 2026, to be conducted via video conferencing.
Strategic Capital Raising Initiatives
The Board of Directors of Indian Overseas Bank has approved a robust capital infusion strategy to support the bank’s growth in FY 2026-27. The plan includes raising equity capital amounting to ₹5,000 crore, which may be executed through various routes including Follow-on Public Offer (FPO), Rights issue, or Qualified Institutional Placement (QIP).
Furthermore, the bank will offer 10 crore new equity shares to permanent employees under the IOB-ESPS 2026-27 scheme. To supplement its capital structure, the bank has also received approval to issue BASEL III compliant Tier II bonds worth up to ₹1,000 crore, providing flexibility to raise funds domestically or overseas as required.
Financial Management and Shareholders Meeting
As part of its financial cleanup, the bank received approval to appropriate accumulated losses as of March 31, 2026, from the Share Premium Account. These strategic moves are subject to necessary statutory approvals.
The bank has scheduled its 26th Annual General Meeting (AGM) for Tuesday, July 7, 2026, at 11:00 a.m. (IST). Given the current guidelines, the meeting will be held virtually via Video Conferencing or Other Audio-Visual Means (OAVM), allowing shareholders to participate remotely.
Source: BSE
