ICRA has reaffirmed the ratings outstanding on the Rs 26.40 billion basel-II compliant lower tier-II bonds programme of Indian Overseas Bank (IOB) at [ICRA]A+.

ICRA has also reaffirmed the rating outstanding on the Rs 26.32 billion basel II compliant upper tier-II bonds programme and Rs 7.80 billion basel II compliant perpetual bond programmes at [ICRA]A. The outlook on the long term rating is revised from 'stable' to 'negative'.

ICRA has reaffirmed the [ICRA] A1+ rating to the Rs 150 billion certificate of deposit programmes of IOB.

The rating agency said, ''The revision in the outlook is on account of continued deterioration in IOB's key asset quality indicators over the recent past, which further impacted the profitability and the solvency profile of the bank during Q3FY2016.''

''The ratings continue to draw comfort from IOB's majority sovereign ownership and, the bank's established franchise imparting healthy and stable deposits base thus providing a favourable view on the liquidity profile,'' it added.

Shares of the bank declined Rs 0.25, or 1.05%, to trade at Rs 23.60. The total volume of shares traded was 54,747 at the BSE (Monday).