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.
In a regulatory filing dated January 23, 2026, Indian Overseas Bank informed stock exchanges that the bond issue, comprising a base issue of ₹500 crore and a green shoe option of ₹500 crore, was fully subscribed on the day of opening itself. The issue was oversubscribed by 6.52 times against the base issue size, with total bids amounting to ₹3,264 crore.
The bank accepted bids worth ₹1,000 crore at a coupon rate of 7.80 percent.
The bonds are non-convertible, taxable, subordinated, unsecured, listed, and fully paid-up Basel III-compliant 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. The bank received 60 bids in total, out of which 29 bids were accepted.
Tier II capital instruments help banks strengthen their capital adequacy and support balance sheet growth while meeting regulatory requirements under Basel III norms. The strong investor response reflects confidence in Indian Overseas Bank’s financial position and capital management strategy.
The disclosure has been made in compliance with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.