Indian Overseas Bank has formally notified stock exchanges about a potential strike by bank unions scheduled for January 27, 2026, which could disrupt normal banking operations across its network.

Strike Notice Details

The bank received information from the Indian Banks' Association (IBA) regarding the strike call issued by the United Forum of Bank Unions (UFBU). The strike notice covers both UFBU's constituent unions and associations, along with the All India Bank Officer's Association (AIBOA), who are participating in support of their collective demands.

Operational Impact Assessment

Indian Overseas Bank has acknowledged that while it is implementing necessary measures to maintain smooth functioning of branches and offices during the strike period, normal operations may still face disruptions. The bank's management is taking proactive steps to minimize potential service interruptions for customers.

The notification emphasizes that if the strike materializes as planned, the functioning of branches and offices across the bank's network may be affected, potentially impacting customer services and routine banking operations.

Regulatory Compliance

The bank has issued this disclosure in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The notice was signed by Ram Mohan K, Compliance Officer, and communicated to both BSE Limited and National Stock Exchange of India on January 26, 2026.

The formal communication ensures that investors and stakeholders are adequately informed about potential operational disruptions that could affect the bank's day-to-day business activities during the strike period.

Indian Overseas Bank has successfully completed its Basel III compliant Tier II bonds issue worth ₹1,000.00 crores, receiving an exceptional response from investors that resulted in the issue being oversubscribed by 6.52 times. The bank received total bids amounting to ₹3,264.00 crores against the base issue size, demonstrating strong investor confidence in the institution.

Bond Issue Structure and Performance

The bond issue was structured with a base size of ₹500.00 crores and an additional green shoe option of ₹500.00 crores, bringing the total issue size to ₹1,000.00 crores. The bank has accepted bids worth ₹1,000.00 crores at a coupon rate of 7.80%.

Bond Specifications

The Series VI bonds are non-convertible, taxable, subordinated, unsecured, listed, and fully paid-up Basel III compliant Tier II bonds in the nature of debentures. The issue consists of 1,000 bonds with a face value of ₹1.00 crore each.

Issue Timeline and Response

The bond issue had a swift timeline, opening and closing on January 22, 2026, with the deemed date of allotment being January 23, 2026. The issue was conducted through BSE Electronic Bidding Platform, reflecting the bank's commitment to transparent and efficient capital raising processes.

The substantial oversubscription of 6.52 times indicates strong market appetite for Indian Overseas Bank's Basel III compliant instruments. Out of 60 bids received, the bank accepted 29 bids, demonstrating selective acceptance while meeting the targeted issue size. This successful capital raising exercise strengthens the bank's Tier II capital base in compliance with Basel III norms.