Shareholders of Indian Overseas Bank (IOB) on Tuesday approved a proposal to raise up to Rs 5,000 crore through multiple equity issuance routes and also cleared the extension of Managing Director and Chief Executive Officer Ajay Kumar Srivastava till October 8, 2027 at the bank's 26th Annual General Meeting.
The AGM, held through video conferencing, passed all four resolutions placed before shareholders with the requisite majority, the state-owned lender said in a regulatory filing to the stock exchanges.
Shareholders approved a special resolution authorising the bank to raise up to Rs 5,000 crore, including share premium, in one or more tranches through instruments such as a follow-on public offer (FPO), rights issue, qualified institutional placement (QIP), employee share purchase scheme (ESPS), preferential allotment to Life Insurance Corporation of India and other insurance companies, mutual funds, qualified institutional buyers (QIBs), or a combination of these modes.
The meeting also approved a special resolution to adjust the bank's accumulated losses as on March 31, 2026, against its share premium account.
In another key decision, shareholders approved the extension of Ajay Kumar Srivastava's tenure as Whole-time Director, Managing Director and CEO of the bank beyond his earlier notified term, with effect from January 1, 2026, until October 8, 2027.
The AGM also adopted the bank's standalone and consolidated financial statements for the financial year ended March 31, 2026, along with the Board's report and the auditors' report.
The meeting was chaired by Non-Executive Chairman Srinivasan Sridhar and was attended virtually by 107 shareholders. The authorised representative of the Government of India, Jnanatosh Roy, also participated in the meeting.
During the AGM, the Chairman and the MD & CEO briefed shareholders on the economic and banking environment, the bank's performance during FY26 and its future growth strategy. Shareholders also raised queries on the bank's performance, which were addressed by the management before voting concluded.