Indian Overseas Bank's Strategic Fundraising Plan: A Game-Changer for Stakeholders

Indian Overseas Bank is gearing up to raise Rs 4,000 crore during this fiscal year, primarily through Qualified Institutional Placements (QIPs), as stated by CEO Ajay Kumar Srivastava. This financial move is expected to reduce the Government of India's stake from 94% to 90%.

The announcement follows a notable 76% surge in net profit for the bank, reaching Rs 1,111 crore in the April-June 2025 quarter, compared to Rs 633 crore in the same period the previous year. The bank's total income rose to Rs 8,866 crore from last year's Rs 7,568 crore.

Srivastava attributes the profit increase to higher interest income from quality lending, effective expense management, and reduced provisioning requirements. The upcoming fundraising is projected to occur by the end of Q3 or Q4, further solidifying the bank's robust financial standing.

(With inputs from agencies.)