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$500-mn MTN issue at right time, says IOB

Would not be raising funds, is looking at Eurozone crisis to stabilises

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Press Trust of India New Delhi
Last Updated : Jan 24 2013 | 1:49 AM IST

 Indian Overseas Bank today said it is "waiting for the right time" on its proposal to raise funds of $500 million through medium-term notes for funding its overseas operations.

"MTN is updated and everything is ready... Currently, the price (share price) is very high. Unless, the European crisis stabilises, we will not be raising funds.

"We are waiting for the right time.. Right now, there is enough liquidity...," IOB Chairman and Managing Director M Narendra said here on the sidelines of the bank's 12th annual general meeting.

The city-headquartered bank last year raised $500 million for its overseas operations and the issue was oversubscribed by four times.

On their proposal to set up a subsidiary in Malaysia under the joint venture agreement with Bank of Baroda and Andhra Bank, he said it wasexpected to become operational in July.

Narendra said they were looking to foray into other regions like Mozambique and also in other markets during this year.

Earlier, addressing the shareholders, Narendra said the Indian Economy witnessed stress during the last year, with leading growth drivers showing declining trend. The turmoil in the euro-zone reduced the global demands, leading to stagnation in some sectors.

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"As a result, the GDP growth slowed down to 6.5% during 2011-12. While agriculture and services sector recorded impressive growth, core sector slackened..", he said.

He said this year the bank's target for agriculture credit was Rs 500 crore and they have already touched around Rs 400 crore.

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First Published: Jun 29 2012 | 6:42 PM IST

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