MUMBAI: State-owned lender Indian Overseas Bank (IOB) has successfully raised ₹1,000 crore through the issuance of Basel III-compliant Tier II bonds, receiving an overwhelming response from investors. The bond issue, aimed at strengthening the bank’s capital adequacy, was oversubscribed 6.52 times, reflecting strong investor confidence in IOB’s financial position.
Bond Issue Details and Subscription
As per a regulatory filing dated January 23, 2026, IOB issued bonds with a base issue of ₹500 crore and a green shoe option of ₹500 crore, which was fully subscribed on the opening day itself. Total bids amounted to ₹3,264 crore, out of which the bank accepted bids worth ₹1,000 crore at a coupon rate of 7.80%.
The bonds are non-convertible, taxable, subordinated, unsecured, listed, and fully paid-up Tier II instruments, issued in the nature of debentures (Series VI). A total of 1,000 bonds of face value ₹1 crore each were issued through the BSE Electronic Bidding Platform. The bond issue opened and closed on January 22, 2026, with January 23, 2026, being the deemed date of allotment.
Investor Response and Regulatory Compliance
The bank received a total of 60 bids, out of which 29 bids were accepted. The strong oversubscription indicates investor confidence in IOB’s capital management strategy and overall financial stability. Tier II capital instruments are crucial for banks as they help strengthen capital adequacy, support balance sheet growth, and ensure compliance with Basel III regulatory norms.
The disclosure has been made in compliance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency and regulatory adherence.
About Indian Overseas Bank (IOB)
Indian Overseas Bank is a leading state-owned public sector bank in India, providing a wide range of banking and financial services. The bank focuses on strengthening its capital base and expanding its footprint to support industrial, commercial, and retail growth across the country.
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