IOB May Miss Public Shareholding Deadline, Seeks Extension: CEO
Business
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Moneycontrol•16-01-2026, 13:29
IOB May Miss Public Shareholding Deadline, Seeks Extension: CEO
- •Indian Overseas Bank (IOB) is unlikely to meet the minimum public shareholding (MPS) norms by the August 1 deadline and plans to seek an extension from the government.
- •The bank reported its highest-ever quarterly profit of Rs 1,365 crore in Q3, driven by 20-24% year-on-year credit growth, 41% CASA ratio, and 18% non-interest income growth.
- •IOB plans to raise Rs 4,000 crore through a Qualified Institutional Placement (QIP) in Q4, which will dilute the government's stake by about 4%, but compliance with the 25% public float will remain challenging.
- •Gross NPAs have significantly declined to around 1% due to sustained recovery efforts, including 16 dedicated ARNB branches and aggressive use of various recovery channels.
- •Despite strong credit growth, deposit growth is lagging, posing a challenge, but the bank maintains a healthy CASA ratio above 40% and aims for a full-year Net Interest Margin (NIM) of 3.3-3.4%.
Why It Matters: IOB faces challenges meeting public shareholding norms despite record profits and strong operational performance.
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