Indian Overseas Bank Slashes Repo-Linked Lending Rate by 50 Basis Points
Indian Overseas Bank (IOB) has reduced its repo-linked lending rate from 8.85% to 8.35%, effective immediately. This 50 basis point cut follows recent monetary policy changes by the Reserve Bank of India, including a 50 basis point interest rate cut and a 100 basis point reduction in the cash reserve ratio. The move is expected to benefit both existing and prospective borrowers, potentially lowering EMIs or reducing loan tenures. This aligns with the broader trend in the Indian banking sector of adjusting lending rates in response to RBI policy decisions.
11Jun 25
Indian Overseas Bank Slashes Lending Rate, Reports 30% Surge in Q4 Profit
Indian Overseas Bank (IOB) announced a 50 basis points reduction in its external benchmark lending rate to 8.35%, effective June 12. The bank reported a 30% year-over-year increase in Q4 net profit to ₹1,051.00 crore, with net interest income growing by 13%. IOB's gross non-performing assets improved to 2.14%. The bank's board approved plans to raise ₹4,000.00 crore through equity and ₹1,000.00 crore via Tier-II bonds to strengthen its capital base.
02May 25
Indian Overseas Bank: Q4 Profit Rises 30%, Plans ₹5,000 Crore Capital Raise
Indian Overseas Bank (IOB) has announced strong Q4 results with a 30% year-on-year increase in net profit to ₹1,051.00 crore. Net Interest Income rose by 13% to ₹3,123.00 crore. The bank significantly improved its asset quality, reducing its Gross Non-Performing Assets ratio to 2.14%. IOB also revealed plans to raise up to ₹5,000 crore by FY2026 through various modes including FPO, QIP, and Tier-II bonds.
26Mar 25
Indian Overseas Bank Faces ₹559 Crore Income Tax Demand, Plans to Challenge
Indian Overseas Bank (IOB) has received an income tax demand notice of ₹558.96 crore for the Assessment Year 2023-24. The bank intends to challenge the order in the appropriate forum, believing it has adequate grounds to substantiate its position. IOB expects the entire demand will subside based on anticipated relief from appellate authorities and currently foresees no impact on its financial operations.
25Mar 25
Indian Overseas Bank Faces ₹559 Crore Tax Demand, Successfully Closes ₹1,437 Crore QIP
Indian Overseas Bank (IOB) received a ₹558.96 crore tax demand for AY 2023-24, which it plans to challenge. Simultaneously, IOB successfully raised ₹1,436.89 crore through a Qualified Institutional Placement (QIP), issuing 35.42 crore equity shares at ₹40.57 each. The QIP increased IOB's paid-up equity share capital to ₹19,256.59 crore, with major allottees including LIC India (34.80%), IIFL Finance (13.92%), and pension funds.
25Mar 25
Indian Overseas Bank Raises ₹1,436.90 Crore Through QIP, LIC and SBI Funds Lead Investment
Indian Overseas Bank (IOB) has successfully raised ₹1,436.90 crore through a Qualified Institutional Placement (QIP), issuing 35,41,77,539 equity shares at ₹40.57 per share. Major investors include Life Insurance Corporation of India (34.80%), IIFL Finance Limited (13.92%), and SBI and LIC Pension Fund Schemes (6.96% each). The QIP has increased IOB's paid-up equity share capital from ₹18,902.41 crore to ₹19,256.59 crore, resulting in a 1.87% dilution of total outstanding equity. This move aims to strengthen the bank's capital base, comply with regulatory requirements, and reduce government shareholding.
19Mar 25
Indian Overseas Bank Set to Raise ₹1 Lakh Crore Through Infrastructure Bonds
Indian Overseas Bank's board has approved the issuance of long-term infrastructure bonds worth ₹1,00,000 crore (approximately $12 billion). This strategic move aims to enhance the bank's lending capacity in the infrastructure sector, aligning with India's focus on infrastructure development. The substantial bond issuance is expected to boost IOB's ability to fund large-scale projects, improve asset-liability management, and strengthen its competitive position in the infrastructure lending segment.
03Mar 25
Indian Overseas Bank Faces ₹700 Crore Tax Liability Demand
Indian Overseas Bank (IOB) faces a significant financial challenge as tax authorities demand ₹700 crore (approximately $84 million USD) in tax liability. This unexpected obligation could impact the bank's financial position, shareholder confidence, and management focus. The bank has not yet released an official statement regarding the demand. The situation may lead to increased regulatory scrutiny and potential negotiations or legal proceedings.
28Feb 25
Indian Overseas Bank Faces ₹699.52 Crore GST Demand Amid Coupon Payment Announcements
Indian Overseas Bank (IOB) received a GST liability demand of ₹699.52 crore, including a ₹35.26 crore penalty, for the 2020-21 assessment year. IOB plans to contest the demand, believing it lacks legal justification. Simultaneously, the bank announced coupon payment dates for its Basel III Tier II Bonds (Series IV & V), with rates of 8.60% and 9.00% respectively, demonstrating commitment to financial obligations amid challenges.
21Feb 25
SEBI Issues Administrative Warning to Indian Overseas Bank for Governance Lapse
Indian Overseas Bank received an administrative warning from SEBI for failing to conduct a Nomination and Remuneration Committee meeting in FY 2023-24, violating SEBI regulations. The bank acknowledged the warning and committed to taking necessary steps to address the issue, stating there is no quantifiable monetary impact on its financial or operational activities.
20Feb 25
SEBI Issues Administrative Warning to Indian Overseas Bank for Non-Compliance
Indian Overseas Bank (IOB) received an administrative warning from SEBI on February 18, 2025, for failing to conduct a Nomination and Remuneration Committee meeting in fiscal year 2024, violating Regulation 19 (3A) of SEBI (LODR) Regulations, 2015. IOB has committed to addressing the issue and reported no impact on its financial or operational activities. The bank's Compliance Officer, Ram Mohan K, confirmed the bank's response to stock exchanges.
19Feb 25
Indian Overseas Bank Appoints New CFO and Receives 'AA/Stable' Long-Term Issuer Rating
Indian Overseas Bank (IOB) has appointed Madhaw Chandra Jha as its new CFO, effective March 1, 2025. Jha, a Chartered Accountant with 19 years of experience at IOB, replaces S P Mahesh Kumar. Additionally, IOB has been assigned a 'AA/Stable' Long-Term Issuer Rating by India Rating & Research Limited, with the same rating affirmed for its Basel III Tier II Bonds.