Indian Overseas Bank gets shareholders’ nod for capital infusion of Rs 4,100 crore

New Delhi/Chennai: Indian Overseas Bank (IOB) has convinced its shareholders and obtained their approval for the Capital Infusion by the government. In an official statement issued on Thursday, IOB said that it has convened an Extraordinary General Meeting (EGM) of the shareholders on Thursday in which it obtained their approval for issuance of 246.54 crore equity shares to the government on a preferential basis for the capital infusion of Rs 4,100 crores by the government.  The EGM was conducted through virtual medium and was attended by the Directors, Shareholders and other stakeholders of the Bank.

According to a statement of the bank, the issue price of equity share is Rs 16.63 per share (including a share premium of Rs. 6.63 per share). Out of Rs 4,100 crore, an amount of Rs 2,465.42 crore will be credited to Share Capital Account and Rs 1,634.58 crore will be credited to Share Premium Account. Accordingly, the shareholding of the government of India will increase from 95.84 percent to 96.38 percent.

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Indian Overseas Bank (IOB)

Indian Overseas Bank (IOB) is a Chennai based public sector bank (PSB). It has about 3,400 domestic branches, about 6 foreign branches and a representative office. Founded in February 1937 by Ct M Chidambaram Chettyar with twin objectives of specialising in foreign exchange business and overseas banking, it has created various milestones in Indian Banking Sector. IOB was the first bank to venture into consumer credit by introducing a personal loan scheme. During nationalisation, IOB was one of the 14 major banks taken over by the government.

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