IOB set to raise 4,000 crore; Centre’s stake to fall

IOB set to raise 4,000 crore; Centre’s stake to fall

CHENNAI: Close on the heels of the Centre divesting 2.2% of its shares in Indian Overseas Bank (IOB), the public sector bank will raise Rs 4,000 crore through a qualified institutional placement (QIP) in Q4 FY26. The move will further bring down the Union government’s holding in the state-owned lender. With the proposed Q4 plan, this is likely to be the bank’s largest QIP fundraise in a single quarter in the past decade. IOB MD & CEO Ajay Kumar Srivastava told TOI, “We are planning to raise the entire Rs 4,000 crore in Q4 FY26. If the entire Rs 4,000 crore is fully subscribed, then it may reduce the government of India shareholding by 3% – 3.5%.”