In the recent Board Meeting held on May 21, 2026, Indian Overseas Bank (IOB) approved a comprehensive capital plan for the financial year 2026-27. The bank plans to raise equity capital of up to ₹5,000 Crores through various modes, including a Follow-on Public Offer (FPO), Rights issue, Qualified Institutional Placement (QIP), or Preferential issue. Additionally, the board approved an Employees Share Purchase Scheme (IOB-ESPS 2026-27) for the offer of 10,00,00,000 new equity shares and the issuance of Basel III compliant Tier II Bonds up to ₹1,000 Crores. Furthermore, the bank intends to appropriate accumulated losses as of March 31, 2026, from its Share Premium Account, subject to statutory approvals.

Indian Overseas Bank is a major public sector bank founded in 1937 and headquartered in Chennai. The bank provides a comprehensive range of retail, corporate, and social banking services, maintaining both a significant domestic footprint and an international presence in hubs like Singapore, Hong Kong, Thailand, and Sri Lanka. During 2025, the bank focused on strengthening its capitalization, enhancing asset quality, and supporting government-led financial inclusion initiatives. As of December 2025, the Government of India remained the majority shareholder. The bank also continued to implement strategic initiatives like “IOB Tejas” for renewable energy and maintained a stable low-cost deposit base through a healthy CASA ratio.