The public sector financial institution Indian Bank has decided to offload 7 percent of its shares to the public through a follow-on offer.
Addressing the media in Chennai, its chairman cum managing director Kishor Kharat said the move is in accordance with the SEBI directive to reduce promoters’ holding to 75 percent of the shares.
The Union Government is the promoter of the bank holding 82 percent of shares at present. Mr Kharat said the bank has earned a net profit of 319.70 crore rupees last quarter, which is a remarkable 278 percent growth as compared to the same period the previous year. He added, the Net Non-Performing Asset has registered a marginal decline to 4.39 percent of the net advances during the quarter.
Mr Kharat said, Indian Bank is the first Indian public sector bank whose Price-to-Book value has reached the level of ‘One,” reflecting its strong performances.