IOB

The government has opened an Offer for Sale (OFS) to divest up to a 3% stake in Indian Overseas Bank (IOB), advancing its broader strategy to reduce holdings in state-owned enterprises and improve market efficiency. The move is aimed at enhancing public shareholding, strengthening capital buffers and aligning with disinvestment objectives. The OFS is expected to attract institutional interest, given IOB’s improving financial metrics and the banking sector’s gradual recovery.

The Government of India has announced plans to divest a significant stake in Indian Overseas Bank (IOB) through a strategic disinvestment, targeting proceeds of Rs. 2,100 crore. This move is part of the broader fiscal strategy to reduce public sector holdings in banking and generate resources for developmental initiatives. The sale aims to attract institutional and retail investors, improve governance, and strengthen the bank’s capital base. Analysts view this as a continuation of India’s financial sector reform agenda, promoting efficiency and competitiveness in state-owned banks.