Indian Overseas Bank to sell non-core assets

In a bid to raise capital, the public sector bank is identifying non-core assets or investments to be monetized. The bank plans to raise Rs. 850 crore this financial year.

The bank has identified 32 properties including prime overseas assets in Singapore and Hong Kong worth Rs. 900 crore.

In fiscal 2018-19, IOB managed to sell six properties,of which five were overseas properties. These sales helped the bank aggregate capital of Rs.129 crore. The bank is in the process of monetising the remaining 26 properties valued at approximately Rs. 775 crore.

Also, IOB is trying to sell its stakes in joint ventures and entities to unlock value of Rs. 445 crore. The bank's management believes that through the augmentation of capital by sale of non-core assets and other initiatives will help improve profits in FY20.

IOB's Q4 and FY19 results are scheduled to be declared on May 9 during a board meeting. The bank's board also plans to consider a dividend during the meeting.

On Tuesday, the stock of Indian Overseas Bank opened at Rs. 14.00 per share. At 10:33 hours, he stock was quoting Rs.13.93, up by 1.60 per cent on BSE.