Indian Overseas Bank mulls FPO next fiscal

Hyderabad: Indian Overseas Bank (IOB), which has been in the red for the last four-and-a-half years, is mulling to raise funds through a Follow-on Public Offering (FPO) next year, a senior official of the state-owned lender said here on Monday.

Ajay Kumar Srivastava, Executive Director IOB, said that the FPO idea was still "at the drawing board level" and the Board would take a decision on the quantum of funds to be raised and the percentage of stake to be diluted.

The centre holds nearly 95 per cent stake while LIC has three per cent and others-two per cent in the bank, which is currently under the Prompt Corrective Action (PCA) framework of the Reserve Bank.

Raising money from public is on the cards. We plan to do it in the second or third quarter. We will go to the market with FPO.

The centre recently increased IOB's authorised capital from Rs 10,000 crore to Rs 25,000 crore.