Chennai, March 1, 2018 – Indian Overseas Bank (IOB), has announced a successful repayment of $500 million (second tranche) of medium term notes (MTN) on the due date February 21, 2018. The bank had issued USD 1 Billion MTN in two tranches of USD 500 million each, of which the first tranche was repaid on October 19, 2016.
IOB had raised these funds for business expansion and lending purpose in the year 2011 and 2012 from its Hong Kong branch for its overseas branches.
In the last sixteen months, the Bank has embarked on a path of turnaround and made impressive strides on the fronts of reduction of operating expenditure, increase in Operating Profit, NPA reduction, arresting the asset quality slippage, improvement in Provisioning Ratio for impaired credit, increase in CASA base i.e its Low Cost – No Cost deposits etc. The bank has also maintained its business base stable despite adverse market conditions.
Indian Overseas Bank (NSE: IOB) is one of the leading Public Sector Bank established in the year 1937 headquartered in Chennai with a strong domestic presence of 3342 Branches & 3278 ATMs as of Dec 2017. 57% of Branches catering to the needs of Rural and Semi Urban centres enhancing deeper Financial Inclusion. IOB is a strong brand that enjoys the trust of over 35 million active customers. As of 31st December 2017, the Bank had a total business of Rs. 3,68,128 crores with Deposits of Rs. 2,16,592 crores and Advances of Rs. 1,51,536 crores. The CASA portfolio of the Bank stood at Rs. 76,526 crores with a CASA% of 35.33%. The Credit to Deposit Ratio of the Bank stood at 69.96 %. The RAM (Retail/Agri/MSME) portfolio contributes to around 64.75% of domestic advances synchronising with the Banks efforts towards rebalancing its Balance sheet. Recently Moody’s upgraded Indian Overseas Bank Rating Outlook to ‘Positive’.