Chennai: The Indian Overseas Bank (IOB) declared a successful repayment of USD 500 million (second tranche) of medium-term notes (MTN) on the due date February 21, 2018.
The bank had released USD 1 billion MTN in two tranches of USD 500 million each, of which the first tranche was repaid on October 19, 2016.
IOB had accumulated these funds for business development and loaning purpose in the year 2011 and 2012 from its Hong Kong branch for distributing among its overseas branches.
During the the last sixteen months, the bank has embarked on a path of turnaround and made remarkable strides on the faces of reduction of working expense, raise in Operating Profit, Non-performing asset (NPA) reduction, arresting the asset quality slippage, improvement in Provisioning Ratio for impaired credit, and increase in Current Account, Savings Account (CASA) base i.e its low cost - no cost deposits.
The Indian Overseas Bank has also maintained its business base with stability in spite of the unfavourable market conditions.