RBI approval for Indian Overseas Bank to call option on bonds worth Rs 655 crore
- Country:
- India
Indian Overseas Bank (IOB) has received RBI nod to exercise a call option on bonds worth Rs 655.30 crore, the bank said Thursday.
"The Reserve Bank has accorded approval for the exercise of a call option on the bonds aggregating to Rs 655.30 crore as per the terms of the issue," the bank said in a regulatory filing.
The call option is scheduled to be exercised on September 17.
In a call option, the issuer of the bond can redeem the instruments before its maturity.
Earlier, the bank had said that it will pay interest on the bonds and not exercise call option but upon subsequent consultations with the RBI, it decided to exercise it owing to impact on capital adequacy.
Shares of IOB closed 0.67 percent up at Rs 15 apiece on BSE.
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