Indian Overseas Bank receives a fresh capital infusion from GOI

The shares of the Indian Overseas Bank (IOB) surged as much as 6.48 per cent on Friday after the public sector bank announced that the Government of India had sanctioned a capital infusion of 4,360 crore in the bank.

In August, the finance ministry had announced a capital infusion of Rs 3,800 crore in the state-owned lender. This has now been increased by Rs 560 crore. The funds sanctioned are for the preferential allotment of equity shares of the bank for the financial year 2019-20 as government investment.

Indian Overseas Bank (IOB) is engaged in the banking business. Its operations consist of domestic deposits, domestic advances, foreign exchange operations, and investments in Micro, Small and Medium enterprises (MSME). Its personal banking services include saving bank, current account, term deposit, retail loans, and mortgages and depository services. It offers merchant banking for issues, debenture trustee, dividend/interest warrant, and other services It has over 3,400 branches in India and 8 branches overseas, with operations in Hong Kong, Bangkok, Sri Lanka, Singapore, and South Korea. It also provides Internet and mobile banking services.

By Friday's market close, the stock was trading at Rs 11.99 up by 6.48 per cent or Rs 0.73 per share. The 52-week high was recorded at Rs 15.80 and the 52-week low was recorded at Rs 8.75.