IOB to raise ₹850 crore this fiscal via asset sale

Lender identifies 32 properties for sale

May 06, 2019 11:11 pm | Updated 11:11 pm IST - CHENNAI

Public sector lender Indian Overseas Bank (IOB) is planning to raise about ₹850 crore in the current fiscal through sale of non-core assets, including property and investments, to augment its capital.

As per the plan, IOB has been exploring options for stake sale in joint venture/other entities to augment resources, which could help raise more than ₹445 crore, the bank said in a regulatory filing.

The bank was looking at ‘all avenues’ to improve its capital position and was actively pursuing monetisation of its non-core assets, the statement said.

As part of its strategy to unlock assets to raise capital, the bank has identified 32 properties for sale, including prime properties in Singapore and Hong Kong aggregating to ₹900 crore.

In 2018-19, the bank sold six properties — one domestic and five overseas — for ₹129 crore which helped in accretion to capital.

The bank has initiated the process for selling the remaining 26 properties, valued at about ₹775 crore, and has engaged various stakeholders for expediting the sale and to derive ‘maximum value’ in the process, the statement said. The lender has also started the process of selling non-core investments worth ₹72 crore.

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