The Indian Overseas
Bank (IOB) is requiring an infusion of Rs 1500 crore in the current fiscal
(2012-13), as said by its Chairman and Managing Director M Narendra on this
Thursday. This type of capital infusion is becoming quite necessary for the
various Indian Banks, considering the economic scenario of current fiscal.
“This year our
requirement may be Rs 1,500 crore, which may be done partly by our profit and
for the rest we will be looking at the government. Last fiscal (2011-12), we
got Rs 1,440 crore and the fiscal year before that we got Rs 1,053 crore. The
government holding in our bank is 69%, and we also look Rs 302 crore from LIC,”
Mr. M Narendra told the press reporters on the sidelines of the ongoing banking
conclave, which is eventually organized by FICCI.
He was also asked to
detail how much the government would likely to infuse, to its reply he told
that the main amount of infusion will surely depend on certain important
details, which will be provided by the various PSU banks like ongoing business
plan, profit level and others.
“Until market comes
to the level, where banking stocks get a fairly better valuation, we may have
to look for the government support and as and when the market capitalization on
the banking sector outlook gets better, we have to look for alternative
resources also,” he added on his speech. On the matter of credit growth he
said, “This year the credit growth is not at par with last fiscal. RBI has
projected 16%, we may look at 18-20% for our bank.”
He also said that
IOB is also making serious plans to raise a capital of merely $500 million
through Medium Term Notes (MTN) in the next three to six months or so. While
talking about the important issue of requiring capital base for Basel III
norms, which is going to start from January 2013, he said, “We need to have
better profitability plan. Our tier I is 8.32% and overall the capital adequacy
ratio is 13.32%.”
0 comments:
Post a Comment