Shares of Indian Overseas Bank rallied as much as 10.2 per cent to Rs 25.40 as the board has approved $1.1 billion write-off. The stock hit its highest since November 7; it posts biggest intraday percentage gain since October 25.
IOB board had on Thursday approved the write-off of bank's accumulated losses worth up to Rs 6,979 crore ($1.10 billion). The company, at its board meeting held on January 4, has considered and approved to utilise the balance available in the share premium account amounting to Rs 7,650.06 crore as at March 31, 2017 to write off the accumulated losses of the bank aggregating Rs 6,978.94 crore as at March 31, 2017 to present a true and fair view of the financial position of the bank and to take the same into account during current the financial year 2017-18.
The company is convening an extraordinary general meeting (EGM) of shareholders of the bank on January 30, 2018 at Chennai for obtaining the approval of the shareholders for the above.
About 3.5 million shares changed hands by 0542 GMT, more than three times the stock's 30-day average.
(With inputs from Reuters)