‘IOB keen to get out of PCA framework’

Partha Pratim Sengupta, MD-CEO, said the IOB plans to raise additional funds of about Rs 2,000 cr from a follow-on equity issue and Rs 1,000 cr by issue of bonds. 

Addressing reporters, Sengupta said the bank has approached the RBI to be taken out of PCA as its financial metrics have turned good. The bank also said it plans to come out of PCA by focusing on loan recovery, low cost deposits and less capital consuming advances. 

It closed last fiscal with a net profit of Rs 831 cr as against a net loss of about Rs 8,527 cr. The total income for the year ended March 31, 2021 stood at about Rs 22,525 cr as against about Rs 20,712 cr for FY20. Sengupta said, the income from treasury operations had beefed up the bank’s other income and the reduction in cost of funds contributed to the profitability. In a regulatory filing, the IOB said its Board has approved the issue of 125 cr equity shares at an appropriate premium to the public by way of follow-on public offer/rights issue with or without government’s participation.