Indian Overseas Bank Seeks Shareholder Approval for ₹5,000 Crore Capital Raise and MD Extension

State-run Indian Overseas Bank (IOB) plans to raise up to ₹5,000 crore in equity capital during FY27 through a mix of qualified institutional placements (QIPs), follow-on public offers, rights issues, preferential allotments and employee stock schemes. The proposal forms part of a special resolution included in the notice for the bank’s 26th Annual General Meeting (AGM) scheduled on July 7. According to the notice, the capital raise could be undertaken through one or more tranches and may include preferential allotments to institutional investors such as Life Insurance Corporation of India (LIC), mutual funds, companies and other qualified institutional buyers. As of March 31, 2026, the Government of India held a 92.44% stake in IOB. In December 2025, the Centre diluted 2.17% of its holding through an offer-for-sale (OFS), raising around ₹2,000 crore. The public sector lender has also sought shareholders’ approval for the extension of Managing Director and Chief Executive Officer Ajay Kumar Srivastava’s tenure as Whole-Time Director until October 8, 2027. His previous notified term ended on December 31, 2025. Last September, the Centre has extended Srivastava’s tenure as MD & CEO for a 21-month period with effect from January 1, 2026. Srivastava has been at the helm of the bank since January 1, 2023.