IOB posts Rs 831 cr profit, follow-up equity issue planned

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Chennai, June 14 | City based Indian Overseas Bank (IOB) plans to raise additional funds from a follow-on equity issue and Rs.1,000 crore by issue of bond.

The bank closed last fiscal with a net profit of Rs.831 crore as against a net loss of about Rs.8,527 crore.

The total income for the year ended 31.03.2021 stands at Rs.22,525 crore as against Rs.20,766 crore for FY20.

In a regulatory filing on Monday, IOB said its Board has approved the issue of 125 crore equity shares at an appropriate premium to the public by way of follow- on public offer/rights issue with or without participation of Government of India.

The Board also decided that the issue could also be to qualified institutional buyers, employee shareholders, issue on preferential basis to insurers and mutual funds.

The bank Board also approved the issue of Basel III compliant tier II bonds up to Rs.1,000 crore in one or more tranches on private placement or public issue.

On 31.03.2021, IOB had received Rs.4,100 crores as capital infusion by the Government of India at an issue price of Rs.16.63 per equity share of Rs.10 each.

According to IOB, it plans to come out of Prompt Corrective Action by focusing on loan recovery, low cost deposits and less capital consuming advances.

During the year under review IOB’s total business stood at Rs.3,79,885 crore (deposits Rs 2,40,288 crore, advances Rs.1,39,597 crore) up from Rs.3,57,723 crore (deposits Rs.2,22,952 crore, advances Rs. 1,34,771 crore).

The bank said it had recovered about Rs.6,831 crore from non-performing assets (NPA) accounts last fiscal.

The bank’s gross NPA reduced from 14.78 per cent as at March 31, 2020 to 11.69 per cent as at 31.3.2021.

The net NPA went down from 5.44 per cent as at 31.3.202 to 3.58 per cent as at 31.3.2021.

Source: IANS

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Does MBA really help in getting a better job offer ?

Does MBA really help in getting a better job offer ?

Most students pursuing an MBA come with the sole objective of having a decent job offer or a promotion in the existing job soon after completion of the MBA. And most of them take loans to pursue this career dream. According to a recent survey by education portal Campusutra.com  74% MBA 2022-24 aspirants said they would opt for education loans.

There are exceptional cases like those seeking master’s degree or may have a family business to take care of or an entrepreneurial venture in mind. But the exception cases are barely 1%. For the rest 99%, a management degree is a ticket to a dream job through campus placements or leap towards career enhancements. Stakes are high as many of them quit their jobs which essentially means loss of 2 years of income, apprehension and uncertainty of the job market. On top of that, the pressure to pay back the education loans. Hence the returns have to be high. There is more than just the management degree. Colleges need to ensure that they offer quality management education which enables them to be prepared for not just the demands of recruiters and for a decent job but also to sustain and achieve, all along their career path.

  • So, what exactly are the B Schools doing to prepare their students for the job market and make them industry ready ?
  •  Are B schools ready to deliver and prepare the future business leaders to cope up with the disrupted market ?  

These are the two key questions every MBA aspirant needs to ask, check and validate before filling the MBA application forms of management institutes. And worth mentioning that these application forms do not come cheap. An MBA aspirant who may have shortlisted 5 B Schools to apply for, may end up spending Rs 10,000.00 to Rs 15,000.00 just buying MBA / PGDM application forms.

While internship and placements data of some management institutes clearly indicates that recruiters today have specific demands. The skill sets looked for are job centric and industry oriented. MBA schools which have adopted new models of delivery and technology, redesigned their courses, built an effective evaluation process and prepared the students to cope with the dynamic business scenario, have done great with campus placements despite the economic slow down.

However, the skill set being looked for by a consulting company like Deloitte or KPMG may be quite different from FMCG or a manufacturing sector. Institutes need to acknowledge this fact and act accordingly.

  • Management institutes should ensure that students are intellectually engaged, self motivated and adapt to changes fast. In one word ‘VUCA ready’.
  • B Schools should encourage students to participate in national and international competitive events, simulations of business scenarios.
  • Institutes should have the right mix of faculty members with industry exposure and pure academics.

The placement records of 2021 across top management institutes indicated the fact that recruitment is happening, skilled talent is in demand and certain management institutions continued to attract recruiters even in the middle of an ongoing crisis.

It is time, all management institutes rise to the occasion, understand market realities and identify areas of improvement at both ends – students and faculty.

After all, the stakes are high at both ends. B Schools taking corrective measures will stay while those which are lagging will end up shutting down.

Author Name : Nirmalya Pal

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