Indian Overseas Bank Raises MCLR By Five Basis Points
The MCLR of three-month, one-year, two-year and three-year tenors remains unchanged.
(Source: Indian Overseas Bank/X account)
Indian Overseas Bank has hiked its overnight and one-month marginal cost of funds-based lending rate by five basis points each, according to an exchange filing on Monday.
The MCLR rates for overnight and one-month tenor have changed from 8.20% and 8.45% to 8.25% and 8.50%, respectively. The revised rates of the tenors will be effective from Tuesday, the public sector bank said.
The MCLR with tenors of three months, one year, two years and three years remains unchanged, the filing said.
In July, IOB had hiked the MCLR by 5–10 basis points across all tenures post-review.
Previous Fundraise
In April, IOB approved a proposal to raise up to Rs 6,000 crore through debt and equity instruments. The bank planned to secure Rs 5,000 crore via a follow-on public offer, rights issue, qualified institutional placement and preferential issue.
The funds will be raised in one or more tranches over the next 12 months from the date of approval. The lender will need to obtain the necessary approvals from the Union government and its shareholders.
Indian Overseas Bank Q1 Performance
In the April-June quarter of the current financial year, the state-run lender reported a net profit of Rs 633 crore, a 27% rise from Rs 500 crore during the same period last year.
The total income surged to Rs 7,568 crore, a 22% growth for the three months ended June 30. In the second quarter of the previous fiscal, the bank had posted a total income of Rs 6,227 crore.
The Chennai-headquartered bank's net interest margin stood at 3.06%, while the non-interest income rose 29% to Rs 1,033 crore in the June quarter as against Rs 803 crore for the same period last year.
The share price of IOB closed 0.37% lower at Rs 54.09 apiece on the NSE, compared to a 0.66% advance in the benchmark Nifty 50.
The stock has risen 22.24% in the last 12 months and 24.92% on a year-to-date basis. No analyst on Bloomberg tracks the company.
