Indian Overseas Bank (IOB) shares gained on Friday after the board has approved capital requirement of Rs 35 billion, under Tier I capital, for the Financial Year 2014-15.

The board has accorded permission to the bank to raise capital by way of issue of equity shares of Rs 10 each at a price determined by SEBI (ICDR) Regulations 2009, to GOI to the extent of their capital infusion.

In addition, the board approved the bank to issue equity shares of Rs 10 each to qualified institutional buyers by way of private placement, up to an extent of not exceeding Rs 12 billion (including the share premium) out of the shortfall in the Tier I capital requirement of Rs 35 billion assessed by the bank.

Shares of the bank are trading at Rs 86.10, up Rs 1.2, or 1.41% at the Bombay Stock Exchange (BSE) on Friday at 10:59 a.m.

The scrip has touched an intra-day high of Rs 87 and low of Rs 85.35. The total volume of shares traded at the BSE is 145,737.

In the earlier session, the shares declined 0.53%, or Rs 0.45, at Rs 84.90.

Currently, the stock is trading down 4.23% from its 52-week high of Rs 89.90 and above 131.76% over the 52-week low of Rs 37.15.