Indian Overseas Bank cuts loss to Rs 1,985 crore, plans to raise funds

The loss is due to increased provisions on NPAs and fraud accounts especially due to back dating of NPAs and one big account declared as fraud

Indian Overseas Bank (IOB) has seen a reduction of 45 per cent in its net loss during the quarter ended March 31, 2019, even as there were increased provisions on non-performing assets (NPAs) and one big account declared as fraud. It has received approval from the Board to issue up to 300 crore equity shares at a premium to public through follow-on public offer, or rights issue, and to raise Tier II capital of up to Rs 1,500 crore by issue of Basel-III Compliant bonds.

The bank has reduced its NPA levels during the quarter compared to the corresponding quarter of