Indian Overseas Bank repays medium term notes of $500 million

Indian Overseas Bank (IOB) has said that it has repayed the Medium Term Notes (MTN) of $500 million on the due date February 21, 2018. The bank had issued $1 billion MTN in two tranches of $500 million each, of which the first tranche was repaid in October 2016.

IOB had raised these funds for business expansion and lending in the year 2011 and 2012 from its Hong Kong branch for its overseas branches.

It has said that in the last sixteen months, the Bank has been in the process of turning around and has improved its performance on 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, which is its low cost - no cost deposits etc. The bank has also maintained its business base stable despite adverse market conditions.