Indian Overseas Bank: Outcome of Board Meeting

Indian Overseas Bank has informed BSE that, in terms of the communication from Government of India, Ministry of Finance. Deportment of Financial Services vide letter dated February 15, 2011 conveying its decision to infuse Rs. 1054 crore (One Thousand Fifty Four crore only) by way of preferential allotment of Equity shores in favour of Government of India, the Board of Directors of the Bank at its meeting held on February 19, 2011, decided to initiate necessary steps to raise capital by creating offering, issuing and allotting such, number of equity shares of face value of Rs. 10/- each for cash at such price as may be determined by the Board in accordance with Regulation 76 (1) of SEBI ICDR Regulations and aggregating to Rs. 1954 crore on preferential basis to Government of India and to complete the formalities by March 31, 2011.

Further the Board considered and approved the convening of an Extra Ordinary General Meeting (E G M) of share holders of the bank on March 22, 2011, for obtaining approval from shareholders on above proposal.Read More