Indian Overseas Bank (IOB) announced that in view of the capital position of the Bank as at 31 March 2018 being below the requirement (including countercyclical buffer) of the Reserve Bank of India, Hong Kong Monetary Authority (HKMA) is enhancing the supervisory arrangements on the bank's Hong Kong Branch (IOBHK).

Accordingly, IOBHK is required:

(i) to maintain high quality liquid assets (HQLA) in Hong Kong equivalent to 100% of unpledged deposits.

(ii) Not to proactively solicit customer deposits while transactional deposits such as pledged deposits for commercial loans can be accepted in normal course.

(iii)To maintain a position of "net due to" its head office, other branches and any direct or indirect subsidiaries and associates of the bank.

Shares of the bank declined Rs 0.05, or 0.31%, to trade at Rs 16.00. The total volume of shares traded was 12,632 at the BSE (10.23 a.m., Wednesday).