Chennai, Aug 23: For the second time in three years, the public-sector Indian Overseas Bank will come out with a public issue of ten crore equity shares of Rs.10 each, with a premium of rs.14 per share, for an aggregate sum of Rs 240 crore, a top executive of the bank said today. The proceeds would be utilised to augment the bank's capital adequacy, take care of emergencies and reduce the government's holding from the existing 75 per cent toÿhairman and managing director of IOB, told a press conference here this evening.

"IOB is the first bank among all the nationalised banks to come out with a second public issue," Gupta added.
The decision to come out with the second public offering was taken at the bank's board meeting held in Delhi yesterday and the premium amount was fixed in consultation with all the board members, Gupta said, adding that the issue would open on September 5 and close on September 12.


He explained that the public offering would increase the bank's equity capital to Rs 544 crore from Rs 444 crore as on March 31 this year.

Gupta said that the bank's business increased to Rs 55,129 crore in 2002-03 from Rs.47,831 crore in the previous year. The net non-performing assets had come down to 5.23 per cent of its net advances as on march 31 this year, from 6.37 per cent on March 31, last year.

Bureau Report