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

Bank recently informed bourses its board had approved the use of the balance available in the share premium account to write off its accumulated losses to present a fair view of its financial position

Indian Overseas Bank’s (IOB’s) decision to utilise the share premium money to write off losses is expected to expedite its return as a dividend-paying bank, says experts. The loss-making bank had last paid dividend to its shareholders nearly four years ago.
 
IoB last week said it was planning to write off its losses using the reserves. In a notice to exchanges, the bank said its board had approved the use of “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 to the tune of