The stock has added 7.20% in three sessions, from its recent closing low of Rs 17.35 recorded on 7 March 2022.

In the past three months, the stock has declined by 18.82% while the benchmark Sensex has lost 4.76% during the same period.

Indian Overseas Bank said that CARE Ratings has assigned 'CARE AA- /Stable' (Outlook: Stable) rating for the proposed issue of Rs 800 crare Tier II Bonds (under Basel III).

CARE Ratings said that the rating assigned to the Tier-II Bond (Basel-III) of Indian Overseas Bank (IOB) factors-in the majority ownership by the Government of India (GoI) and demonstrated funding support by GoI, including the equity infusion of Rs.4,100 crore in the month of March 2021.

The rating also factors-in the long track record of operations with strong presence in South India, diversified advances book and deposit base with comfortable CASA. IOB's asset quality metrics have witnessed improvement in the last four years ended March 2021 with significant write-off of NPAs, which resulted in the bank reporting high losses during FY18-FY20.

Notwithstanding such losses, IOB reported continuous improvements in its CAR levels during FY18-FY21. The aggregate equity infusion by GoI during the same period stood at Rs.19,974 crore.

The rating is constrained by moderate asset quality despite improvement seen over the past few years, and the bank's earnings profile has been moderate as it has started reporting profits in FY21 and 9mFY21; however, the level of profit continues to be moderate and any further impact on account of COVID-19-related stress may impact the asset quality and profitability, going forward.

Indian Overseas Bank is one of the 12 public sector banks (PSB) in India. As of December 31, 2021, the Government of India held 96.38% in IOB, followed by institutional investors, the public, and others. As of December 31, 2021, IOB was operating in India through 3,214 branches, 3,270 ATMs, and 2,709 business correspondence (BC) relationships. The bank also has a presence in overseas countries through four countries - Singapore, Hong Kong, Colombo and Bangkok.

The bank's standalone net profit surged to Rs 454.11 crore in Q3 FY22 from Rs 212.87 crore in Q3 FY21. Total income declined 7% YoY to Rs 5383.62 crore during the period under review.