Indian Overseas Bank (IOB), on Thursday announced a successful repayment of USD 500 million (second tranche) of medium term notes (MTN) on the due date February 21, 2018.
The bank had issued 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 raised these funds for business expansion and lending purpose in the year 2011 and 2012 from its Hong Kong branch for its overseas branches.
In the last sixteen months, the bank has embarked on a path of turnaround and made impressive strides on the fronts of reduction of operating expenditure, increase 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 bank has also maintained its business base stable despite adverse market conditions.
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