IOB Targets Rs 750-cr Housing Loan Disbursement This Fiscal

Kolkata, Aug 29: | Updated: Aug 30 2003, 05:30am hrs
Indian Overseas Bank (IOB) has set a target to disburse Rs 750 crore of housing loan during the current financial year of 2003-04, according to IOB chairman & managing director SC Gupta.

We have set a target to disburse Rs 750 crore of housing loan during the current fiscal, out of which we have already disbursed Rs 125 crore during the first quarter of the current fiscal to June 30, 2003, Mr Gupta told reporters at a press conference here Friday. He said that during the fiscal to March 31, 2003, IOB disbursed housing loan worth Rs 591 crore.

He was in Kolkata to announce the banks public issue of 10 crore equity shares of Rs 10 each for cash at a premium of Rs 14 per share, aggregating Rs 240 crore. The issue will open for subscription on September 5, 2003, and will remain open till September 12, 2003.

Speaking on the occasion, Mr Gupta further said that the during the first quarter of the current financial year, IOB achieved a net profit of Rs 138 crore, which is one-third of the net profit earned during the entire fiscal of 2002-03.

Mr Gupta, however, refused to disclose the targeted financial performance for the current fiscal. He said that the amortisation of the voluntary retirement scheme will come to end by March 2004. This will result into an additional profit of around Rs 70 crore, he said.

Mr Gupta said that the proceeds of the public issue will be utilised to augment the capital base of the bank to help fund future business growth. This public offering will increase the banks equity capital to Rs 544.8 crore from Rs 444.8 crore as on March 31, 2003. After the issue, the government holding in IOB will come down to 61.23 per cent from 75 per cent, he said.

He said that 10 per cent of the equity shares of the proposed public issue will be reserved for IOB employees. We will also sanction loan up to Rs 30,000 at prime lending rate to our employees so that they can subscribe to the issue, Mr Gupta said.