Page 5 - Indian Overseas Bank

IOB's loss making branches down to 157 from peak of 742

The lender has focused Strongly on cost reduction, bank rationalisation and NPA recoveries; today, only 5% of its branches are loss making, compared with a peak of 22%

Indian Overseas Bank eyes turnaround in September quarter of 2019-20

The bank is pinning its hopes on profitability of unit-level branches, reduction in NPA and slippages, improvement in operating profit seen as key reasons

S&P affirms Indian Overseas Bank rating at 'BB', keeps outlook stable

International rating agency S&P Global Monday affirmed credit rating of state-run Indian Overseas Bank (IOB) at 'BB' and 'B' on expectation of government's capital infusion. The lender's outlook has also been kept stable. The bank breached its regulatory capital requirements after a loss in the third quarter of FY19. Its tier-I capital ratio was 6.95 percent below the minimum regulatory requirement of 7 percent. It's capital shortfall to meet that regulatory minimum was about Rs 62.5 crore as of December 31, 2018. "We expect IOB to receive substantial capital from the government before the end of this fiscal year in March 2019 to materially improve the bank's headroom above the regulatory minimum tier-I capital ratio of 7 percent," the rating agency said in a note. The bank's capital position improved in Q4 of FY19 through an employee stock purchase scheme (ESPS) and sale of non-core assets for which it has received initial payment. The agency said any lengthy delay

IOB Q3 loss narrows by 64% to Rs 346 cr, income up 12% to Rs 5,689 cr

Recoveries during the quarter surpass slippages; Provision coverage ratio improves to 64.23% in reporting quarter from 57.83% a year ago

After 4 years, NPA-laden IOB expects to be back in the black in FY20

IOB may exit RBI's Prompt Corrective Action framework by 2019-20

IOB seeks shareholders' approval to issue preferential shares to govt

These preferential shares, including share premium, would aggregate to Rs 21.57 billion

IOB to follow PSU peers, sell non-core assets worth Rs 7 bn

In January the bank had set off accumulated losses with share premium amount, in an effort to spruce its balance sheet

IOB looks at profit in Q4 FY19, NCLT recoveries to help improve profile

Indian Overseas Bank is currently under the Reserve Bank of India's Prompt Corrective Action framework

Govt's stake in IOB to increase by 7.49% after Rs 46.94-bn capital infusion

Government of India's stake in the Indian Overseas Bank (IOB) to increase by 7.49 per cent after it infuses Rs 46.94 billion as part of its recapitalisation programme.In January, the Government has said it will recapitalise Public Sector Banks including Rs 800 billion through Recap Bonds and Rs 81.39 billion as budgetary support for 2018.As the announcement, Rs 46.94 billion is allocated to IOB through Recap Bonds as well as budgetary support for 2017-18 by way of preferential allotment of equity shares in favour of GOI. Out of this, Rs 41.32 billion will be through Recap Bonds.The Bank has said that post the infusion, Government's stake will increase by 7.49 per cent to 89.90 from 82.41 per cent currently.IOB said that, with a view to comply with BASEL III requirements relating to capital adequacy, there is an ever increasing need to raise capital. GOI proposes to infuse additional equity capital into the Bank as part of its commitment to strengthen the government owned financial ...

Indian Overseas Bank repays medium term notes of $500 million

IOB had raised these funds for business expansion and lending in the year 2011 and 2012

Use of share premium for write-off to hasten IOB's return as dividend-payer

T E NARASIMHANIndian Overseas Bank (IOB's) decision to utilise the share premium money to write off loss is expected to help the Bank to come back faster in dividend paying mode, says experts. It may be noted, last time the loss-making Bank paid the dividend was nearly four years ago.IoB last week said that it has planned to write off its losses from reserves. In a notice to exchanges, the bank said its board has approved to "utilise the balance available in the share premium account amounting to Rs 76.5 billion as on March 31, 2017 to write off the accumulated losses aggregating to Rs 69.8 billion as on March 31, 2017 to present a true and fair view of the financial position of the bank and to take the same into account during 2017-18."While various sections have raised questions, including whether this will become an example for other Banks to follow R Subramaniakumar, chief executive of IOB has justified saying this will not alter the liability, it won't change the position of ...

Indian Overseas Bank plans to write off its losses from reserves

Bank will utilise funds in its share premium account to write off accumulated losses of Rs 69.8 bn at the end of last fiscal year

IOB sells Bhushan Steel account to SSG Capital at 40% write-off

State-owned Indian Overseas Bank (IOB) has sold its Bhushan Steel account with less than 40 per cent write-off (haircut is the formal term); SSG Capital has acquired the debt. Sources in IOB say the process should be complete by this weekend. SSG Capital was the largest bidder, with Rs 376 crore. Other bidders, mainly asset reconstruction companies (ARCs), included Edelweiss, JM Financial and Pegasus.Without disclosing the number, an IOB source said over 60 per cent was recovered and this would help to strengthen the balance sheet. The Bank's exposure to Bhushan was Rs 650-700 crore.In the recent past, the Bank has been in the process of reducing its high levels of non-performing assets (NPAs). In September, it sold bad debt exposure of Rs 1,600 crore in Essar Steel to Edelweiss ARC at a 50 per cent discount to the book value.The bank's gross NPAs at end-September were Rs 34,709 crore, about 22.7 per cent of the total, as against Rs 35,453 crore or 23.6 per cent at end-June. Recovery .

Hope to see a turnaround in 2018-19: IOB MD&CEO R Subramaniakumar

Subramaniakumar hopes to sustain profits in subsequent quarters as well

NPA woes: IOB sells Rs 1,600 cr exposure in Essar Steel to Edelweiss ARC

The bank is looking at all options, including selling the assets and the NCLT route for reducing the NPA burden

Indian Overseas Bank Q1 net loss narrows to Rs 499 cr

Net loss of Indian Overseas Bank for the quarter ended June 30, 2017 has narrowed to Rs 499.09 crore as compared to Rs 1450.50 crore during the same quarter of last year. Total income has declined 11.8 per cent during the quarter to Rs 5174.50 crore during the quarter as against Rs 5868.44 crore during the corresponding quarter of previous fiscal, on account of reduction in interest rates, said the Bank.The gross Non-Performing Asset (NPA) during the quarter was at Rs 35,453.12 crore, with ratio of 23.6 per cent as compared to Rs 33,913.15 crore with 20.48 per cent ratio during the same quarter last year. Accretion to Gross NPA is at Rs 355 crore in the quarter ended June 2017.One of the main reasons for higher Gross NPA ratio is the contraction of credit by 9.26 per cent year on year, it said. The net increase in Gross NPA was 4.54 per cent over the same quarter last year, despite contraction of advances by 9.26 per cent during the comparable period.Net NPA stood at Rs 20,165.61 ...

Indian Overseas Bank's woes stay despite corrective action for 7 quarters

The Prompt Corrective Action (PCA) plan it was ordered to adopt hasn't yet enabled a turnaround at Chennai-based Indian Overseas Bank (IOB).It was put under the PCR by the Reserve Bank in October 2015 but the government-owned lender continues to report losses in each quarter since, due to the heavy burden of provisioning for loans gone bad. Beside an adverse business climate and the Asset Quality Review ordered by RBI in the second half of 2015-16, with its fallout, uncertainty over appointment of a fulltime chief executive by the government had also hit its performance. R Koteeswaran, full-time managing director and chief executive (MD & CEO), demitted office at end-June 2016. The government appointed R Subramaniakumar as full-time chief only in March 2017. He'd joined IOB as executive director at end-September 2016 on a lateral transfer from Indian Bank. And, was assigned additional responsibility as MD & CEO from November 11, 2016. The higher provision in 2016-17 for ...

IOB seeks investors' nod for QIP of Rs 1,300 crore

Indian Overseas Bank (IOB), which has a big load of loans gone bad or stressed, says it has finalised a turnaround strategy. R Subramaniakumar, who took charge last month as managing director and chief executive, in a letter to the shareholders, said there would a focus on digital transformation and penetration. In the short term, stabilisation of its information technology platform. They were, he said, the first government-owned bank to have migrated to the latest version of Finacle Core Banking, a digital application. IOB also plans to introduce work flow automation. The accent would be on maximising of loan recovery and minimising of fresh slippage. The gross amount of non-performing assets (NPAs) was Rs 30,049 crore at the start of this financial year.A plan to chase NPAs had actually been started in April 2016 itself. Regional heads had been asked to visit NPA loanees at least four days in a week. And, a 15-member Special Recovery Team was formed in each region. A daily recovery .

IOB gets board's nod to raise funds via preferential allotment route

Bank to issue tier-I perpetual bonds of Rs 1,500 cr

NPAs part of biz but these have to be under control: R Subramaniakumar

IOB's gross and net NPAs were the highest during the quarter ended December, at 22.4%