State-owned Indian Overseas Bank today said it plans to raise Rs 400 crore by selling shares on preferential basis to Life Insurance Corporation.
"We are seeking approval of Extra Ordinary General Meeting (EGM) on February 26 for making preferential allotment to LIC," IOB Chairman and Managing Director M Narendra said on the sidelines of its 78th foundation day here.
The bank proposes to issue 8.15 crore shares to LIC at Rs 48.84 per shares on preferential basis to LIC or its schemes.
The Chennai-based bank recently received Rs 1,200 crore from the government as part of capital infusion plan for public sector banks for the current fiscal.
Following the infusion, Government of India's holding in the bank increased to 79.01 per cent, from 73.80 per cent.
On its foundation day, Finance Minister P. Chidambaram opened 111 branches of the bank across 21 states here today.
The total number of its branches has increased to 3,250.
Besides, he also declared open 78 ATMs of the bank across various states.
Speaking on the occasion, Chidambaram said, IOB's ranking has moved from 14th to 7th among the nationalised banks.
The Finance Minister also asked the bank to continue to open overseas branches.
The bank presently has 10 overseas branches and three representative offices.