Indian Overseas Bank to raise Rs 850 crore via non-core assets sale

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Published: May 7, 2019 2:07:20 AM

The loss-making bank, which is burdened with a major chunk of sticky assets, is currently exploring options for stake sales in joint venture and other entities to augment resources, which could help raise over Rs 445crore.

 Indian Overseas Bank, IOB, assets sale, Banking, FInance, news, investment, Indian Overseas Bank to raise Rs 850 crore via non-core assets sale

Chennai-headquartered public sector lender Indian Overseas Bank (IOB) on Monday said it plans to raise about Rs 850 crore this fiscal from the sale of non-core assets including properties and investments. The loss-making bank, which is burdened with a major chunk of sticky assets, is currently exploring options for stake sales in joint venture and other entities to augment resources, which could help raise over Rs 445crore.

In a statement, IOB said to shore up capital, the bank is looking at all avenues and has been actively pursuing monetisation of its non-core assets. As part of its strategy to unlock assets to raise capital, the bank has identified 32 properties for sale, including prime properties in Singapore and Hong Kong, for a value aggregating to Rs 900 crore, it said.

During 2018-19, IOB had sold six properties — one domestic and five overseas — for a value aggregating to Rs 129 crore which has helped in accretion to capital. K Swaminathan, executive director, IOB, said, “The bank with various initiatives has turned around and the capital augmentation through these traditional ways will facilitate it to achieve the targeted profit in FY20”.

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