Indian Overseas Bank To Raise Rs 10,000 Crore Via Long-Term Infra Bonds
Indian Overseas Bank will use the funds for financing or refinancing of infrastructure and affordable housing.
The board of Indian Overseas Bank approved on Wednesday raising Rs 10,000 via issuance of long-term infrastructure bonds. The bonds will be issued in one or more tranches during the current year, or the following financial year, the lender told exchanges in a regulatory filing.
The funds are meant for financing or refinancing of infrastructure and affordable housing in compliance with applicable RBI guidelines and other applicable laws, rules and regulations, the filing read.
In January, the public sector lender shared plans to sell 46 bad loan accounts Rs 11,500 crore to improve its asset quality. The bank had invited bids from asset reconstruction companies to conduct the auction digitally through the open auction method on a portfolio basis.
The NPA portfolio to be offloaded included accounts financed under a consortium arrangement, along with written off accounts, with some admitted under the National Company Law Tribunal.
Indian Overseas Bank: Q3 Performance
Indian Overseas Bank reported a net profit of Rs 874 crore for the third quarter of the current fiscal 2025, representing a 21% increase compared to the Rs 723 crore profit in the same quarter last year.
The bank's total income for the quarter was Rs 8,409 crore, up from Rs 7,437 crore in the previous year's quarter. Additionally, its operating profit rose to Rs 2,266 crore from Rs 1,780 crore in December 2023.
Shares of Indian Overseas Bank closed 3.30% higher at Rs 43.83 apiece on the National Stock Exchange, compared to a 0.32% rise in the benchmark Nifty. The stock has fallen 24.10% in the last 12 months.
