IOB ready for overseas bond issue

Mumbai: Indian Overseas Bank will soon be embarking on an overseas bond issue to meet the increasing offshore fund requirements of domestic corporates, Chairman and Managing Director N Narendra said here on Thursday.

"We are on the job. In fact, barring the timing and issue size, we are through with the job on the medium-term notes issue. We have a headroom to raise up to USD 1 billion," Narendra told reporters on the sidelines of a banking technology summit here.

He further said the issue could be launched as early as in the third week of this month. "We are in touch with our five merchant bankers – RBS, HSBC, StanChart, Citi and Morgan Stanley-on the issue," he added.

He also refused to speak about the coupon rate of the issue, saying everything will be decided at the right time.

"We don`t want to hit the market when so many others (Canara Bank is raising USD300 million now)are already in the market, he said.

On capital infusion by the Centre, he said, the Chennai-based bank will be getting Rs 1,054 crore this month.

Post-this, the Tier I capital of the bank will go up to 8 per cent from 7.58 percent, while government`s holding will move up to 68 percent from the current 61 percent, he said.

On whether he expects government funds next fiscal, he said, "we have not decided anything on that as of now."

As to how would this Rs 1,054 crore infusion be, he said the extra-ordinary general body meeting salted for March 23 will decide on that.

He further said, the bank has sought permission to open two more branches from the British banking authorities.