Public sector lender Indian Overseas Bank has informed that it will soon raise Rs 700 crore through bonds to meet capital requirements.

The bank further stated its board of directors has approved the issue of unsecured, reedemable bonds, which will be raised shortly.

According to sources, the bank is in talks with state-run insurer Life Insurance Corp of India to sell bonds up to Rs 700 crore. The bonds will have a 15-year maturity, with call option at the end of the 10th year.

Recently, Chennai-based bank has raised Rs 300 crore from unsecured bonds.