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International rating agency S&P Global Monday affirmed credit rating of state-run Indian Overseas Bank (IOB) at 'BB' and 'B' on expectation of government's capital infusion. The lender's outlook has also been kept stable. The bank breached its regulatory capital requirements after a loss in the third quarter of FY19. Its tier-I capital ratio was 6.95 percent below the minimum regulatory requirement of 7 percent. It's capital shortfall to meet that regulatory minimum was about Rs 62.5 crore as of December 31, 2018. "We expect IOB to receive substantial capital from the government before the end of this fiscal year in March 2019 to materially improve the bank's headroom above the regulatory minimum tier-I capital ratio of 7 percent," the rating agency said in a note. The bank's capital position improved in Q4 of FY19 through an employee stock purchase scheme (ESPS) and sale of non-core assets for which it has received initial payment. The agency said any lengthy delay

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