The shares of Indian Overseas Bank (IOB) Limited were trading at ₹50.10 down by ₹3.67 or 6.83 per cent on the NSE
Indian Overseas Bank (IOB) has announced plans to auction non-performing assets worth ₹11,433.72 crore, comprising 46 accounts, to Asset Reconstruction Companies (ARCs). According to a regulatory filing dated January 10, 2025, the bank has published an Expression of Interest inviting ARCs to participate in an e-auction scheduled for January 30.
The development comes amid reports that the government is considering allowing the Department of Investment and Public Asset Management (DIPAM) to divest stakes in five public sector banks, including IOB. The news has triggered positive sentiment in the PSU banking sector, particularly among small-cap banks.
The broader market context remains favorable, with the Nifty index gaining 0.4 per cent in the previous session, supported by strong performances in PSU banks, metals, and auto stocks. Small and mid-cap indices recorded gains exceeding 2 per cent due to bargain hunting by investors.
Eligible ARCs and other transferees can submit their EOIs by January 18, 2025, to participate in the upcoming auction. IOB has confirmed the authenticity of the news through its regulatory filing and stated that it has been making timely disclosures under SEBI regulations. The bank also affirmed that it has not withheld any price-sensitive information that could impact its share price.
