IOB to Shed Overheads for Raising Rs 900 Crore in FY 19
Government-owned Indian Overseas Bank has identified 32 assets for sale, including prime properties in Singapore and Hong Kong, to raise about Rs 900 crore in the current financial year 2019-20.
In the previous fiscal, it sold six properties – one within the country and five overseas – for Rs 129 crore. The bank has initiated the process for sale of the remaining 26 properties valued at Rs 775 crore.
“The bank is looking at all avenues to improve its capital position and has been actively pursuing monetisation of its non-core assets,” said IOB Executive Director K Swaminathan.
The bank has also initiated the process of unlocking value from non-core investments valued at Rs 72 crore to augment the capital.
In the fourth quarter ending March 31, equity shares worth Rs 261 crore were issued under the Employee Share Purchase Scheme, said Swaminathan. Capital augmentation through these traditional ways will facilitate the bank to achieve the targeted profit in FY 20, he said in a statement.
Many Indian banks are saddled with huge non-performing assets due to large exposure in stressed sectors real estate, power, telecom and airlines.