The Indian Overseas Bank headquartered in Chennai is not only one of the  27 State owned banks in the country but is also a bank with a difference known for  innovative products and remaining committed to strengthening the national economy ever since it came into being.

 On the occasion of the 78th foundation Day of the leading bank in New Delhi on February 10th, a proud and beaming 58-year-old M Narendra, heading the bank as its Chairman and Managing Director (CMD) with 37 years exposure to the banking sector, recalled its future plans on how to serve the clientele better and far more satisfactorily. The august ceremony was held in the national capital for the convenience of the Union Finance Minister P Chidambaram who presided over it. Since the Budget session was on, he could not have graced the function if it was held elsewhere. The Finance Minister opened 111 branches of the bank across 21 States increasing the total number of its branches to 3,250. Besides this, he also declared open 78 ATMs of the bank in several States. He was happy to note that IOB’s ranking has moved from 14th to 7th among the nationalized banks. He asked the bank to open more overseas branches. Presently, IOB has 10 overseas branches and three representative offices.

Indian Overseas Bank plans to raise Rs.400 crore by selling shares on preferential basis to Life Insurance Corporation of India. “We are seeking approval of Extra Ordinary General Meeting (EGM) on February 26 for making preferential allotment to LICI,” Narendra told some media people on the sidelines of the function. The bank proposes to issue 8.15 crore shares to LICI at 48.84 INR per share on preferential basis to LICI or its schemes. The IOB has been provided 1,200 crore INR from the Government as part of its capital infusion plan for public sector for the current fiscal ending on March 31, 2014.

Following the infusion, the Government of India’s holding in the bank increased to 79.01 per cent from 73.80 per cent. Both Chidambaram as well as Narendra appreciated the farsightedness of the bank’s founder Shri M. Ct. M. Chidambaram Chettyar in 1937 when he was a leading businessman and envisioned the contribution the banking sector could make to the national economy. It was nationalized in 1969 and has emerged as the 7th largest nationalized bank.  During the last three years, the Bank’s business has nearly doubled. More than 1,000 branches have been added to the branch network. Illustrious founder of IOB Chidambaram Chettyar succeeded his father as a Director of his conglomerate after 1929. Chidambaram Chettyar soon emerged as one of the top industrialists in the country. On February 10, 1937, he founded the Indian Overseas Bank which concentrated on improving the country’s industrial sector. The bank began business simultaneously from its branches at Karaikudi and Rangoon. Chidambaram Chettyar was also one of the founders of United India Assurance. 

IOB was international from its inception with branches in Rangoon, Penang, and Singapore. Indian Overseas Bank has achieved 100 per cent networking status as well as 100 per cent CBS status for its branches. IOB also has a network of about 2100 ATMs all over India and IOB’s International VISA Debit Card is accepted at all ATMs belonging to the Cash Tree and NFS networks. IOB offers internet Banking (E-See Banking) and Mobile Banking and is one of the banks that the Government of India has approved for online payment of taxes. 

The net profit for the year ended on March 31, 2012 stood at 1,050.13 crore INR. Total income stood at 19,578.13 crore INR as against 13,326.56 crore INR registered during the same period last financial year. For the full year, the total business grew by 24 per cent to 3,21,707 crore INR from 2,59,020 crore INR. IOB has planned to achieve total business of 3.85 trillion to Rs.4 trillion this fiscal.

Addressing the gala function attended by leading bankers and other dignitaries, the Finance Minister reminded them that people have realized the importance of banking services. Wherever he goes on official assignments, many persons request him to open at least one branch of a bank in their locality to avail of the bank’s various facilities.

If a branch is opened in a particular area, people there get all facilities, which improves the local economy. Besides Sivaganga in Tamil Nadu which is  his Parliamentary Constituency, the other branches of the  Indian Bank opened by him through video conferencing on February 9 included 36 in Tamil Nadu; 19 in Uttar Pradesh; 13 in Orissa, 12 in Andhra Pradesh, seven in Kerala three in Karnataka, one each in West Bengal and Assam and 16 in other States. This year 10,000 branches of PSU banks have been opened across the country providing jobs for 50,000 persons.

Indian Bank’s business in Tamil Nadu was Rs.90,000 crore and this will touch ` one lakh crore in the coming year, he added.

PK Chakravarty