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Chennai based public sector Indian Overseas Bank has approved preferential allotment of shares to the union government for raising capital up to Rs 2100 crore.
The board of the bank also gave nod to raise the shortfall for tier -1 capital by the way of private placement of shares to Qualified Institutional Buyers (QIB) in case the government is unable to infuse the complete amount.
IOB’s capital adequacy ratio (CAR) was 10.93% with tier-1 capital of 7.14% as per Basel-III norms.
