The company's market valuation fell by Rs 1,233.43 crore to Rs 9,717.57 crore on the BSE.
The bank had registered a net loss of Rs 487.26 crore in the corresponding quarter of the previous financial year
Indian Overseas Bank said it had linked the Repo Linked Lending Rate to its loans to be sanctioned under retail segment and micro, small and medium enterprises with immediate effect.
IOB said that it received bids for Rs 855 crore but decided to accept bids for a Rs 500 crore base size.
The Reserve Bank through a notification in early September had advised banks to link all new floating rate for personal or retail loans and MSMEs to one of the external benchmarks.
According to its top official, the city-headquartered bank expected to post profits during the April-June quarter.
Bank of Baroda, Bank of India, Indian Overseas Bank and Union Bank of India were fined Rs 1.5 crore each, while Allahabad Bank and Bank of Maharashtra were penalised Rs 2 crore each. Oriental Bank of Commerce was penalised with Rs 1 crore, the RBI said.
The bank achieved Rs 2,238 crore recovery and reported fresh slippages at Rs 2,050 crore for the quarter ended June 2019
Sekar, who began his career in State Bank of India as a probationary officer, had served Dena Bank as its Managing Director and CEO.
Total income stood at Rs 5,473.92 crore in the fourth quarter of the last fiscal as against Rs 5,814.42 crore in the same period a year ago, it said in a regulatory filing.
Total income during the quarter was down at Rs 5,473.92 crore from Rs 5,814.42 crore in the year-ago period, the bank said in a regulatory filing.
The bank was looking at all avenues to improve capital position, the notification said, adding, it was actively pursuing monetisation of its non-core assets.
The Chennai-based bank said that that 269 crore shares at Rs 14.12 per share were allotted to the government on preferential basis.
According to the bank's Managing Director and CEO, R Subramaniakumar the capital infusion would help the bank shore up its capital adequacy requirements and enable the bank build a robust loan book.
The agency has also affirmed local and foreign currency deposit ratings of Bank of India, Canara Bank, Oriental Bank of Commerce and Union Bank of India at Baa3/P-3.
The global rating agency said it has upgraded Central Bank of India as well as IOB's ratings to Ba2 from Ba3 earlier.
The Reserve Bank further said Rs 20 lakh fine each on HDFC Bank, IDBI Bank and Kotak Mahindra Bank for non-compliance with various directions on Know Your Customer (KYC) norms and Anti-Money Laundering (AML) standards.
TLT LLP has been representing the banks in their efforts to recover their dues as part of the worldwide freezing order, with the bankruptcy petition aimed at seizing his assets to recover dues.
The bank's board had earlier approved a proposal to raise the amount by issuing Basel III compliant Tier II bonds in one or more tranches on private placement basis.
"The board of directors of the bank, approved the issue and allotment of up to 18.24 crore equity shares to eligible employees of the bank under the Indian Overseas Bank-Employee Stock Purchase Scheme 2018 (IOB-ESPS 2018)," the bank said in a regulatory filing.
"The board of directors of the bank, have by circular resolution... approved the raising of tier II capital by issue of tier II Basel III compliant bonds for an issue size of Rs 200 crore with green shoe option of additional Rs 100 crore aggregating Rs 300 crore in one or more tranches on a private placement basis," Indian Overseas Bank said in a regulatory filing.
MCLR for a one-year tenor will rise to 8.75 percent from 8.7 percent. Most of its retail loans are benchmarked against one-year MCLR.