Indian Overseas Bank (IOB) has received board approval to raise Rs 100 billion through the issuance of long-term infrastructure bonds, the bank announced in a regulatory filing on Wednesday. The bonds will be issued in one or more tranches during the current or next financial year. 

The funds raised will be used for financing or refinancing infrastructure projects and affordable housing, in line with RBI guidelines and other regulatory requirements. 

Earlier in January, IOB announced plans to sell Rs 115 billion worth of bad loans across 46 accounts to improve asset quality. The bank invited bids from asset reconstruction companies (ARCs) for a digital auction under the open auction method. The NPA portfolio includes accounts financed under consortium arrangements, written-off accounts, and some cases admitted under the National Company Law Tribunal (NCLT). 

(ndtvprofit)     

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