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Indian Overseas Bank cuts lending rate by 50 bps to 8.35%Effective June 12, the bank’s repo linked lending rate (RLLR) will stand at 8.35%, down from the earlier 8.85%. Shares of Indian Overseas Bank Ltd ended at ₹39.60, down by ₹0.76, or 1.88%, on the BSE.By Jomy Jos Pullokaran   June 11, 2025, 6:29:22 PM IST (Published)2 Min ReadPublic sector Indian Overseas Bank Ltd (IOB) on Wednesday (June 11) announced a 50 basis points reduction in its external benchmark lending rate (EBLR), following the Reserve Bank of India’s decision to cut the repo rate to 5.50% during its Monetary Policy Committee (MPC) meeting held from June 4-6, 2025.

Effective June 12, 2025, the bank’s repo linked lending rate (RLLR) will stand at 8.35%, down from the earlier 8.85%.

Fourth quarter

The lender's net profit increased by 30% from the same quarter last year to ₹1,051 crore, while its net interest income (NII) grew by 13% on a year-on-year basis to ₹3,123 crore.

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Lower provisions on a sequential basis contributed to the jump in profitability. Provisions for non-performing assets stood at ₹200 crore during the March quarter, compared to ₹400 crore in the December quarter.

Asset quality for the bank also improved quarter-on-quarter to 2.14% from 2.55% in December, while net NPA stood at 0.37% from 0.42% during the previous quarter. Return on assets stood at 1.12% at the end of the quarter from 0.94% during the same quarter last year.

Additionally, the board has approved raising equity share capital of ₹4,000 crore through a follow-on public offer (FPO), rights issue, a qualified institutional placement (QIP) or a preferential issue or any other mode in one or more tranches. This is subject to shareholder approval during its AGM or an extraordinary general meeting (EGM).

Also Read: Indian Overseas Bank launches QIP to raise up to ₹2,000 crore; check floor price and other details

Indian Overseas Bank will also raise up to ₹1,000 crore through Basel-III compliant tier-II bonds, depending upon the requirement, with or without a greenshoe option during the financial year.

Shares of Indian Overseas Bank Ltd ended at ₹39.60, down by ₹0.76, or 1.88%, on the BSE.

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