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IOB eyes ₹5,000 Cr capital boost by FY27
13 Jun
Summary
- IOB plans to raise ₹5,000 crore by FY27.
- Capital will be raised via QIPs, rights issues, and other methods.
- CEO Ajay Kumar Srivastava's tenure extended to October 2027.
State-run Indian Overseas Bank (IOB) has announced plans to raise a substantial amount of capital, targeting up to ₹5,000 crore by the end of the fiscal year 2027. This capital infusion is set to be achieved through a strategic mix of financial instruments, including qualified institutional placements (QIPs), follow-on public offers, rights issues, preferential allotments, and employee stock schemes.
The bank's proposal is a key item on the agenda for its upcoming 26th Annual General Meeting (AGM) on July 7. The capital raise may occur in multiple phases, potentially involving preferential allotments to major institutional investors. As of March 31, 2026, the Indian government holds a significant 92.44% stake in IOB, following a previous dilution of 2.17% in December 2025.
Furthermore, IOB is seeking shareholder approval to extend the term of its Managing Director and Chief Executive Officer, Ajay Kumar Srivastava. His tenure as Whole-Time Director is proposed to be extended until October 8, 2027. Srivastava has been leading the bank since January 1, 2023, and his leadership was previously extended by the Centre for a 21-month period effective from January 1, 2026.
