Brickworks downgrades Indian Overseas Bank bonds

iob

Credit Rating agency Brickwork Ratings India Pvt Ltd. downgraded bonds issued by Indian Overseas Bank from A- to BBB+.

It maintained its outlook on the bonds as negative.

The downgrade has come in the context of rising bad loans on the bank´s balance sheet.

Indian Overseas Bank is one of the worst affected banks as far as non-performing assets are concerned.

At the end of the June quarter, the total gross non-performing assets (GNPAs) of the lender have touched a record high of 20.48 percent of its total loan book (of Rs 1,65,556 crore). This is one of the highest NPA proportion for any large commercial bank in India.