State-owned Indian Overseas Bank has approached the government for an infusion of Rs 1,000 crore Tier-I capital to augment its capital base.

“We have approached the government for a capital infusion of Rs 1,000-crore Tier-I capital,” IOB Chairman and Managing Director, S A Bhatt, told reporters on the sidelines of a FICCI-IBA banking summit here today.

The infusion will help the bank to maintain a capital adequacy ratio of 12 per cent and a Tier-I capital ratio of eight per cent, Mr. Bhatt said.

Three other public sector banks – Kolkata-based Uco Bank, Central Bank of India and Vijaya Bank- had received approval early this year for the infusion of Rs 3,800-crore government capital.

Mr. Bhatt said IOB expects Rs 60 crore non-interest income primarily from the sale of bancassurance products in FY 10.

The bank has targeted a loan growth of 20 per cent this year, he added.

Keywords: BanksCapital inflow

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