Indian Overseas Bank has received a capital infusion of 43.6bn ($607.57m) from the union government to meet regulatory requirements.
In a stock exchange filing, the lender said that it received the amount as contribution of the government in the preferential allotment of equity shares during the financial year.
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The capital infusion comes at a time when the bank is under the Prompt Corrective Action (PCA) framework of the Reserve Bank of India (RBI).
RBI places a commercial bank under PCA frame work when a bank fails to fulfil certain requirements. It includes capital to risk weighted assets ratio, net non-performing assets and return on assets.
According to news IANS, Indian Overseas Bank reported an increased loss of INR22.54bn for the quarter ending September 2019. The increase in net loss was attributed to provision of INR10.81bn for the likely shortfall of securities in existing NPA’s.
Indian Overseas Bank: Details
Indian Overseas Bank is a public sector lender with its headquarters in Chennai.
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By GlobalDataThe bank was established in 1937 and was nationalised in 1969 along with other 13 lenders by the government.
Currently, the bank operates 3272 branches in the country and another four in the overseas. It has around 2,995 ATMs and 2,723 BCs.
According to Performance Analysis Q2/H1 2019-20, it has around 36 million active customers.
