New Delhi, July 2 () Public sector Indian Overseas Bank (IOB) on Thursday said its managing director and chief executive Karnam Sekar retired on June 30. The lender in a regulatory filing said "Karnam Sekar has demitted office as MD &amp; CEO of the bank on June 30, 2020, being the date of his superannuation". Karnam had joined the bank as an OSD (officer on special duty) and whole-time director on April 1, 2019 and was elevated as MD and CEO on July 1, 2019 after the retirement of Subramaniam Kumar. Sekar was appointed as OSD of IOB after merger of Dena Bank and Vijaya Bank into Bank of Baroda. He was MD and CEO of Dena Bank since September 21, 2018. Prior to that, he was deputy managing director and chief credit officer in State Bank of India, heading its Highest Credit Committee. In SBI, he was also responsible for formulating loan policy of the bank. Sekar had joined State Bank of India as Probationary officer in December 1983. IOB posted a standlaone net profit of Rs 143.79 crore in the last quarter of fiscal ended March 2020, as it was able to bring down its bad loan proportion significantly. KPM MKJ MKJ

Karnam Sekar retires as Indian Overseas Bank MD & CEO

New Delhi, Jun 7 () Public sector lender Indian Overseas Bank has cut marginal cost of funds based lending rate (MCLR) by up to 0.30 per cent across all tenors, which will bring down cost for consumer loans. The benchmark one-year MCLR, against which most of the consumer and retail loans are priced, has been cut by 0.20 per cent from June 10, Indian Overseas Bank (IOB) said in a release on Sunday. IOB reduced its interest rate on loans linked to MCLR by 30 basis points in overnight tenor and by 20 bps in one month to one year tenors. Hence, loans linked to MCLR will become cheaper, said the Chennai-based state owned bank. The bank has also reduced its interest rate on loans linked to Repo Linked Lending rate (RLLR) from 7.25 per cent to 6.85 per cent per annum, IOB said. Retail loans (housing, education, vehicle etc) and credit to micro, small and medium enterprises (MSMEs), which are linked to RLLR, will now be available at cheaper rates, it added. KPM BAL BAL

Indian Overseas Bank cuts MCLR by up to 30 bps

Hyderabad, Feb 17 () Indian Overseas Bank (IOB), whichhas been in the red for the last four-and-a-half years, ismulling to raise funds through a Follow-on Public Offering(FPO) next year, a senior official of the state-owned lendersaid here on Monday. Ajay Kumar Srivastava, Executive Director IOB, said thatthe FPO idea was still "at the drawing board level" and theBoard would take a decision on the quantum of funds to beraised and the percentage of stake to be diluted. The centre holds nearly 95 per cent stake while LIC hasthree per cent and others-two per cent in the bank, which iscurrently under the Prompt Corrective Action (PCA) frameworkof the Reserve Bank.Raising money from public is on the cards. We plan to doit in the second or third quarter. We will go to the marketwith FPO.First we have to go to our Board, we have to go to RBIand SEBI also ( for necessary approvals). It is on the drawing board, but nothing has beenconcretised. But it is in our action for next year, he toldreporters at a press conference here. The centre recently increased IOB's authorized capitalfrom Rs 10,000 crore to Rs 25,000 crore.The Government also infused Rs 4,360 crore capital intothe bank.He said the Chennai-based lender is in the process ofimproving its performance in terms of controlling Non-performing Assets (NPA) and Net Interest Margin (NIM). The banks NIM is currently at about 1.94 per cent and isexpected to touch two per cent during the current quarter."It would take another three of four quarters to touchthe three per cent-NIM... We will prefer to go for FPO afterwe come out of PCA, he said.The Reserve Bank of India's PCA framework, which intendsto nurse financially weak banks back to health, restrictslending and expansion of lenders. Srivastava said going forward the focus of the creditwould more for MSMEs and wants to be recognized as "MSME-focused bank".He said currently the exposure to the sector is Rs 31,000crore and efforts are on to take it Rs 50,000 crore in thenext 18-24 months.IOB also classified 200 of its branches as "MSME-focused". GDK APRAPR APR

Indian Overseas Bank mulls FPO next fiscal

New Delhi, Apr 27 () Indian Overseas Bank (IOB) on Monday said it has introduced a special borrowing programme for self help groups to help them tide over the challenges inflicted by COVID-19.The maximum loan amount is Rs 5,000 per member of a self help group (SHG) with a cap of Rs 1 lakh for the group. The bank said SHGs with a good track record and a history of minimum two loans from IOB will be eligible for this loan facility, which can be availed till June 30, 2020. As per the bank's rule, only those SHGs whose existing loans are standard and performing as on March 1, 2020 are eligible to avail loan under this special scheme.The state-owned lender said interested borrowers can apply through branches directly or through business correspondents.IOB said the loans would be sanctioned and disbursed within six working days. The loans are to be repaid in 30 EMIs after initial moratorium of six months, it said, adding the rate of interest for these loans is 9.4 per cent.The bank said it will not charge any processing fee or pre-payment fee for this loan scheme."SHG borrowers are an important part of the economy...we are working to the best of our ability to extend our support to SHGs and help them in the wake of Coronavirus. Our efforts are aligned with the Government of India's advice to help all sectors in the economy to function properly and sustain amidst the crisis at hand. These loans will assist the SHGs pass through the difficult times they are encountering in the present scenario," IOB MD&amp;CEO Karnam Sekar said.Also these loans will have no correlation with the corpus of the SHG. Moreover, to encourage this segment of borrowers no additional security will be required from the group. KPM ANUANU

COVID-19 : Indian Overseas Bank launches special scheme for SHGs

By Kumar Dipankar &amp; Ammar Zaidi New Delhi, Feb 22 () Reserve Bank of India Governor Shaktikanta Das has said four banks under the Prompt Corrective Action (PCA) framework are taking efforts and they are being monitored.Currently, Indian Overseas Bank (IOB), Central Bank of India, UCO Bank and United Bank of India are under this framework, which puts several restrictions on them, including on lending, management compensation and directors' fees."We would like them to improve their performance and come out of PCA as quickly as possible. We are engaged with the banks. We are monitoring it. They are taking efforts. Banks are required to take several actions to come out of the PCA, and that is being monitored," Das told in an interview.Recently, the government announced capital infusion of Rs 11,521 crore into these four banks, with IOB getting the highest amount of Rs 4,360 crore. Central Bank of India got Rs 3,353 crore, UCO Bank Rs 2,142 crore and United Bank of India Rs 1,666 crore.Besides, LIC-controlled IDBI Bank too received additional capital of Rs 4,557 crore through the first supplementary demands for grants approved by Parliament in December.Last year, the RBI removed five banks - Bank of India, Bank of Maharashtra, Oriental Bank of Commerce, Allahabad Bank and Corporation Bank - from the PCA framework in two phases after capital support from the government that resulted in improvement in their financial parameters.The capital infusion helped these lenders meet requisite capital thresholds and reduce their net NPA levels to below 6 per cent.Out of the 11 banks put under the PCA framework last year, Dena Bank ceased to exist as a separate entity after its merger with Bank of Baroda in April, while IDBI Bank has been acquired by LIC.With regard to the proposed mega merger of public sector banks announced by the government, the governor said, the RBI has advised the lenders to take special measures to ensure that the normal activities do not face any disruption."The normal activity in terms of loan sanction in terms of recoveries and other activities are affected because of the merger process. So, and we are monitoring that, we will monitor that," he said.Last year in August, the government announced the consolidation of ten public sector banks (PSBs) into four mega state-owned lenders. As per the plan, United Bank of India and Oriental Bank of Commerce would merge with Punjab National Bank, making the proposed entity the second largest public sector bank (PSB).It was decided to merge Syndicate Bank with Canara Bank, while Allahabad Bank with Indian Bank. Similarly, Andhra Bank and Corporation Bank are to be consolidated with Union Bank of India.In April 2019, Bank of Baroda in a first three-way merger exercise amalgamated Vijaya Bank and Dena Bank with itself. The SBI had merged five of its associate banks - State Bank of Patiala, State Bank of Bikaner and Jaipur, State Bank of Mysore, State Bank of Travancore and State Bank of Hyderabad and also Bharatiya Mahila Bank with itself effective April 2017. DP ANZ BAL

Efforts of banks under PCA frameworks are being monitored: RBI Governor

Pune, Feb 12 () State-owned Indian Overseas Bank (IOB), which has been in the red for the last four-and-a-half years, expects to become profitable in the fourth quarter of the current financial year, its Managing Director and CEO Karnam Sekar said on Wednesday. He said that once the lender becomes profitable, it will be out of the Reserve Bank of India's prompt corrective action (PCA) soon. In the quarter ended December 2019, the lender posted a net loss of Rs 6,075 crore as against a net loss of Rs 346 crore in the year-ago period, due to a higher provisioning of Rs 6,664 crore made for bad loans. "In the December quarter, we made higher provisions and, therefore, we incurred a huge loss. That will be the last quarter where we have declared loss. We will be in clear net profit from this (fourth) quarter onwards after being in red for almost four-and-a-half years," Sekar told reporters here on the sidelines of the golden jubilee celebration of the National Institute of Bank Management (NIBM). He said the bank's slippages were mainly from corporate accounts but it has now been fully addressed. "I don't see any corporate accounts which is likely to slip. We have not taken any exposure in the past four-five years. So, the corporate sector problems have been addressed," he said. In the December quarter, the slippages reduced to Rs 1,971 crore from Rs 2,154 crore in the year-ago quarter. In third-quarter results announced earlier this week, the bank said it plans to come out of PCA by focusing on recovery, low-cost deposits and less capital-consuming advances. In the October-December quarter, total recovery including technical write-off stood at Rs 7,085 crore. "We expect a recovery of Rs 1,000 crore, including from Bhushan Steel, in the fourth quarter," he said. Gross non-performing asset (NPA) ratio as percentage of total advances reduced to 17.12 per cent at the end of December 2019 as compared with 23.76 per cent last year. Due to provisions made during the quarter, the net NPA ratio improved to 5.81 per cent, which is less than 6 per cent prescribed by RBI. HV HRS

Indian Overseas Bank expects to become profitable in Q4 FY20: MD & CEO

New Delhi, Feb 10 () State-owned Indian Overseas Bank (IOB) has reported widening of its net loss to Rs 6,075.49 crore during the third quarter ended December 2019, owing to higher provisioning for bad loan. The bank had registered a net loss of Rs 346.02 crore during the corresponding October-December period of 2018-19. Its total income during the December 2019 quarter also fell to Rs 5,197.94 crore from Rs 5,688.59 crore in the year-ago quarter, IOB said in a regulatory filing. Provisioning for bad loans jumped to Rs 6,663.94 crore, compared with Rs 2,075.28 crore a year ago. The bank's gross non-performing assets (NPAs), however, dropped to 17.12 per cent of the gross loans at the end of December 2019, from 23.76 per cent a year ago. Net NPAs fell to 5.81 per cent from 13.56 per cent. In value terms, the gross NPAs were valued at Rs 23,733.86 crore from Rs 35,786.57 crore. Net NPAs were Rs 7,087.09 crore from Rs 17,987.92 crore. On NPA divergence for 2018-19, the bank said there was a gap of Rs 358 crore in gross bad loans, as the bank had reported it to be Rs 33,398 crore while the Reserve Bank of India assessed it to be at Rs 33,756 crore . Net NPAs divergence was of Rs 358 crore and the divergence for provision came in at Rs 2,208 crore. Thus, overall loss during 2018-19 was adjusted to Rs 5,999.90 crore from the earlier reported Rs 3,737.90 crore. The provision coverage ratio improved to 86.20 per cent, IOB said. Shares of IOB closed at Rs 9.92 apiece on the BSE, up 1.95 per cent. KPM HRS

Indian Overseas Bank Q3 net loss widens to Rs 6,075 cr on higher bad loan provisioning

Shares of <keyword id="107781" type="CITY" weightage="100" keywordseo="Indian-Overseas-Bank">Indian Overseas Bank</keyword>, majority controlled by the <keyword id="6377129" type="ORGANIZATION" weightage="100" keywordseo="Government-Of-India">Government of India</keyword>, fell to their lowest level in at least five years after the PSU lender reported a sharp surge in non-performing assets coupled with an equally precipitous drop in first quarter profit. 

	IOB said its first quarter consolidated Net Profit fell 50 percent to 14.7 crore rupees compared with 27.2 crore rupees in the same quarter a year ago. Total Income during April-June gained 6 percent to 6,672 crore rupees from 6,284 crore rupees in the year ago period. 
 

	The bank's Gross Non Performing Assets surged to 9.4 percent versus 5.8 percent in the same quarter previous year. Similarly, the Net NPAs showed an upward trajectory, rising to 6.31 percent in the first quarter compared with 3.85 percent in the year ago period, the bank said in a statement to the exchanges.
 

	IOB Futures were the top losers in the Futures and Options market with Open Interest rising 9.1 percent and the counter showing a heavy build up of short positions. 
 

	They were down 2.25 rupees, down 5.9 percent, at 35.70 rupees.
 IOB's market capitalisation has fallen 49 percent in the past one year to 4,694 crore rupees as investors dumped PSU <keyword id="87658" type="UNKNOWN" weightage="100" keywordseo="banking-stocks">banking stocks</keyword> on the back of the rising NPA problem and a critical slowdown in the main industrial sectors of Infrastructure, steel, power and construction. 
	 
	(Image credits: frontline)

Have bank stocks started reacting to apprehensions of US Fed meeting?

<keyword id="107781" type="CITY" weightage="80" keywordseo="Indian-Overseas-Bank">Indian Overseas Bank</keyword>, a government-owned lender, rose for the 2nd day after it made a preferential issue to the government in exchange of funds to boost its lending.
 IOB, 73.8 percent owned by the government, allotted 48.56 crore <keyword id="30335" type="ORGANIZATION" weightage="20" keywordseo="Shares">shares</keyword> to the government at a price of 41.37 rupees each to raise 2,008.99 crore rupees. The amount will help IOB improve its capital adequacy and augment lending.
 IOB jumped 5.9 percent to 37.55 rupees in late afternoon trade. More than 1 crore shares of IOB were traded versus a 5-day average of 20.88 lakh shares on the <keyword id="53581" type="CITY" weightage="80" keywordseo="NATIONAL-STOCK-EXCHANGE">National Stock Exchange</keyword>. The stock made it to the top volume buzzers list on the NSE.

	IOB's market capitalisation has fallen 40 percent in the past one year to 4,391 crore rupees as investors stayed away from PSU lenders in the wake of rising non-performing assets. IOB is trading at one-third its book value of 113 rupees per share. 
	 
	Image credit: Indiatimes

Shares of Indian Overseas Bank rose for the second day. Know why

Midcap and <keyword id="44747" type="General" weightage="100" keywordseo="small-cap" source="Orion">small cap</keyword> stocks, which have performed well in this financial year, are underperforming the benchmark indices on Monday. The BSE Small Cap Index is one of the biggest losers in trade, down 2.4%. In comparison, <keyword id="6484188" type="General" weightage="20" keywordseo="sensex" source="Orion">Sensex</keyword> is down by just 0.36%. Among the Small Cap index components, PNB Gilts is down 12%, Ion Exchange is down 9%, Onward Technologies is down 9%, Kirloskar Brothers is down 8%, HCC is down 8%, Rajratan Global Wire is down 8%, Vascon Engineers is down 8%, Vimta Labs is down 8%. Among the constituents of the index, KIOCL is down 7%, Amber Enterprises is down 7%, Finolex Industries is down 7%, RCF is down 6%, Indiabulls Housing Finance is down 6%, SJVN is down 6%, Star Cement is down 6%, Bank of Maharashtra is down 6%, ITI is down 6%. <keyword id="44748" type="General" weightage="80" keywordseo="mid-cap" source="Orion">Mid cap</keyword> stocks are also under selling pressure The BSE Mid Cap Index is down 1.3%. Among the stocks, Laurus Labs is down 10%, IOB is down 5%, Bank of India is down 4%, UCO Bank is down 4%, ABFRL is down 4%, IRFC is down 4%, BHEL is down 3%. Even as the headline indices have taken a knock, small and mid cap stocks had survived the selling pressure and outperformed the headline indices. According to Motilal Oswal Asset Management Company (MOAMC)'s Global Market Snapshot report,Nifty Midcap 150outperformed all major indexes in September by rising 3.04%. It has risen by 12.98%, 33.37%, 29.92% in the last three months, six months and one year, respectively. Similarly, <keyword id="6354813" type="General" weightage="20" keywordseo="nifty" source="Orion">Nifty</keyword> Smallcap 250 has also performed well during the same period rising by 15.99%, 39.17%, 32.96% in the last three months, six months and one year, respectively.

Mid and small cap indices come under selling pressure

<ul><li>At 7:45 am, the SGX Nifty was down 1% at 8.56 points pointing towards a lower start for Nifty50.</li><li>Here’s a list of <keyword id="73648" type="PERSON" weightage="20" keywordseo="Stocks-to-watch">stocks to watch</keyword> for in trade today. </li><li><a href="https://www.businessinsider.in/">Check out the latest news and updates on Business Insider.</a> </li></ul>Indian stock-market indices are likely to open in green on Friday, on the back of positive cues from the global markets. At 7:45 am, the SGX Nifty was down 1% at 8.56 points pointing towards a lower start for Nifty50. US stocks finished higher on Thursday, buoyed by strong gains in tech shares. Nasdaq ended at a record high. Asian markets too have opened on a positive note. These are the stocks to watch out for during the trading session today: Future Retail and RIL <a href="https://www.business-standard.com/article/companies/future-enterprises-board-likely-to-discuss-merger-plan-on-saturday-120082100066_1.html">According to reports</a>, the board of Future Enterprises is likely to discuss the proposal to merge other listed group entities, such as Future Lifestyle, Future Retail, and Future Supply Chain Solutions, with itself on Saturday. After completing the process, Ambani’s owned Reliance Industries will be investing ₹8,500 crore in the merged entity by way of additional capital, said the report. The shares of RIL ended nearly 2% lower, whereas Future Retail was up 4% yesterday. Divi’s Lab and SBI Life Insurance SBI Life Insurance and Divi’s Lab will enter benchmark index Nifty50 on September 25, the stock-exchange said on Thursday. It will replace Zee Entertainment and Bharti Infratel on the index. The shares of Divi’s Lab ended nearly a percent higher, whereas SBI life Insurance tanked nearly 2% yesterday. Wipro Wipro has set up a blockchain-based gas trading platform for Uniper Global Commodities SE. The platform is built in collaboration with Uniper Global utilises a consortium model for all ssLNG market participants to help transform the trading market space, which will result in significant market efficiencies and cost savings for traders. The shares of Wipro closed nearly 2% lower yesterday. Indian Overseas Bank The Indian Overseas Bank posted a net profit of ₹121 crore for the first quarter ended June 30, mainly due to fall in bad loans. Total income of the bank during April-June 2020-21 rose to ₹5,233.63 crore from ₹5,006.48 crore in the same period of the previous fiscal, mainly due to an increase in treasury income, it said. The shares of IOB closed nearly 5% higher yesterday. Premier Explosives Premier Explosives won an order from Israel Aerospace Industries Limited. The company also added that the order is expected to be delivered within 9 months. The shares of IOB closed over 1% lower yesterday. Future Enterprises Kishore Biyani-led Future Enterprises Ltd (FEL) on Thursday said it has defaulted on interest payment of non-convertible debentures. "The company is unable to service its obligations in respect of the interest on non-convertible debentures (NCDs) due on August 16, 2020, since August 16, 2020 was holiday, interest was due on 17 August 2020," Future Enterprises said in a filing to stock-exchanges. The shares of Future Enterprises closed over 5% higher yesterday. Hindalco Hindalco Industries has signed an MoU with UltraTech Cement to deliver 1.2 million metric tonne of bauxite residue annually to the cement company’s 14 plants located across seven states. Hindalco claims to be the world’s first company to achieve 100% red mud (bauxite residue) utilisation, across three of its refineries. The shares of Hindalco closed nearly a percent higher yesterday. Punjab National Bank, Oil India, Indiabulls Housing Finance, Coffee Day Enterprises, Rossari Biotech These companies are slated to report their first-quarterly earnings today. SEE ALSO: <a href="https://www.businessinsider.in/business/ecommerce/news/indias-e-commerce-is-now-even-better-than-before-smaller-cities-add-to-the-bounty-while-metros-continue-to-lead/articleshow/77655199.cms" data-type="tilCustomLink">India’s e-commerce is now even bigger than pre-COVID – smaller cities add to the bounty while metros continue to lead</a> <a href="https://www.businessinsider.in/finance/news/rbi-governor-wants-keep-indias-monetary-war-chest-dry-for-future-use/articleshow/77656482.cms" data-type="tilCustomLink">RBI Governor wants keep India's monetary war chest dry for future use</a>

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