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 bankĀ“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.