IOB’s write-off plan seen setting precedent for banks

Proxy firms say that as long as there is transparency, governance is not being compromised.

“Whenever there are too many bad loans, banks have to provision for them aggressively and it usually comes at the cost of shareholders either from the general surplus or share premium accounts. This is what is happening in the case of IOB too,” said Shriram Subramanian, founder and managing director, InGovern Research Services, a proxy advisory firm.