Indian Overseas Bank on Tuesday announced interim dividend of 12 per cent to its shareholders and a reduction of 0.5 per cent in its primary lending rate, taking it to 11 per cent.
Speaking to newsmen after board meeting, the bank's Chairman and Managing Director, S C Gupta, said the total outgo on account of interim dividend would be Rs 73.75 crore.
The record date has been fixed as January 23, to determine eligibility and entitlement to receive the interim dividend.
The reduction in 'Benchmark PLR' would come into force from January one, he said, adding that the reduction would bring down the operating profits by Rs 17-18 crore for the last quarter of the current financial year.
By making 'our system more efficient and by reducing cost of operations, we will be able to cover a portion of the reduction in operating profits', the CMD said.
Gupta said the bank performed 'exceptionally well' in the first half of this year, covering all areas of banking operations. Profits increased due to reduction in cost and improvement in income generation, supported by increase in other income.