Indian Overseas Bank repays $500 m bond

Mumbai, Mar 1: State-run Indian Overseas Bank has repaid USD 500 million, which was raised as part of the second tranche of its medium-term notes (MTN) from overseas investors.

Between 2011 and 2012 the Chennai-based public sector lender had raised USD 1 billion as part of its MTN in two tranches of USD 500 million each.

The repayment was made on February 21 on maturity of the instrument. The first tranche was repaid in October, 2016.

The funds were raised for business expansion and lending purposes in 2011 and 2012 from the bank's Hong Kong branch, it said in a statement here today.

In January this year, the government infused Rs 173.06 crore from the government.

The lender will also be getting Rs 4,964 crore of capital from the government for FY18 as part of the recapitalisation plan.

In the quarter ended December Indian Overseas Bank reported net loss of Rs 971.17 crore as against a net loss of  Rs 554.44 crore in the year-ago quarter, due to higher provisioning for bad loans.