Bharat Overseas not keen on merging with IOB
Our
Banking Bureau
3 December 2005
Mumbai:
Bharat Overseas Bank officials have said that the bank
was considering a merger with a small bank like Federal
Bank or Bank of Rajasthan as that would be the right
fit for BhOB.
Even
though the Indian Overseas Bank (IOB) is one of the
original promoters of the bank, it is a relatively large
bank and, hence, BhOB did not want to be absorbed by
it, added the officials.
The
officials said BhOB's asset base was less than Rs5,000
crore compared with IOB's asset base of Rs25,000 crore.
IOB holds 30 per cent stake in BhOB. The other shareholders
of BhOB are Bank of Rajasthan (16 per cent), ING Vysya
Bank (14.66 per cent), Federal Bank (10.67 per cent),
Karur Vysya Bank (10 per cent), South Indian Bank (10
per cent) and Karnataka Bank (8.67 per cent).
BhOB
is planning an initial public offer and is awaiting
Reserve Bank of India's approval for the offer. The
bank initially planned to tap the market in October
itself.
Bharat Overseas
plans to raise about Rs100 crore to increase its net
worth to Rs300 crore from Rs198.38 crore as on March
31, 2005.
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