Indian Overseas Bank
|Type||Public (BSE: 532388)|
|Founded||Madras, February 10, 1937|
|Key people||M. Narendra
(Chairman & MD)
|Products||Loans, Credit Cards, Savings, Investment vehicles etc.|
|Revenue||357550 crore (US$57 billion) (2012)|
|Net income||19578 crore (US$3.1 billion) (2012)|
|Total assets||921707 crore (US$150 billion) (2012)|
Indian Overseas Bank (IOB) (BSE: 532388) is a major bank based in Chennai (Madras), with more than 3078 domestic branches, 3 extension counters and six branches overseas as of 31.03.2012. Indian Overseas Bank has an ISO certified in-house Information Technology department, which has developed the software that 3003 branches use to provide online banking to customers; the bank has achieved 100% networking status as well as 100% 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) & Mobile Banking and is one of the banks that the Govt. of India has approved for online payment of taxes.The bank's business more than doubled in the last four years.
The net profit for the year ended March 31, 2012 stood at Rs 1,050.13 crore. Total income stood at Rs 19,578.13 crore as against Rs 13,326.56 crore registered during the same period last financial year.For the full year, the total business grew by 24 per cent to Rs 3,21,707 crore from Rs 2,59,020 crore.IOB has planned to achieve total business of Rs 3.85 trillion to Rs 4 trillion this fiscal.
- Pre-World War II
In 1937, Thiru.M. Ct. M. Chidambaram Chettyar established the Indian Overseas Bank (IOB) to encourage overseas banking and foreign exchange operations. IOB started up simultaneously at three branches, one each in Karaikudi, Madras (Chennai) and Rangoon (Yangon). It then quickly opened a branch in Penang and another in Singapore. The bank served the Nattukottai Chettiars, who were a mercantile class that at the time had spread from Chettinad in Tamil Nadu state to Ceylon (Sri Lanka), Burma (Myanmar), Malaya, Singapore, Java, Sumatra, and Saigon. As a result, from the beginning IOB specialized in foreign exchange and overseas banking (see below). Due to the war, IOB lost its branches in Rangoon, Penang, and Singapore.
- After World War II
In the 1960s, the banking sector in India was consolidating through the merger of weak private sector banks with stronger ones; IOB absorbed five banks, including Kulitali Bank (est. 1933). Then in 1969 the Government of India nationalized IOB. At one point, probably before nationalization, IOB had twenty of its eighty branches located overseas. After nationalization it, like all the nationalized banks, turned inward, emphasizing the opening of branches in rural India.
In 1988-89, IOB acquired Bank of Tamil Nadu in a rescue.
- The new millennium
In 2000, IOB engaged in an initial public offering (IPO) that brought the government's share in the bank's equity down to 75%. In 2001 IOB acquired the Mumbai-based Adarsha Janata Sahakari Bank, which gave it a branch in Mumbai. Then in 2009 IOB took over Shree Suvarna Sahakari Bank, which was founded in 1969 and had its head office in Pune. Shree Suvarna Sahakari Bank had been in administration since 2006. It had nine branches in Pune, two in Mumbai and one in Shirpur. The total employee strength was estimated to be little over 100.
- International expansion
As mentioned above, IOB was international from its inception with branches in Rangoon, Penang, and Singapore. In 1941, IOB opened a branch in Malaya that presumably closed almost immediately because of the war.
In 1946, after the War, IOB opened a branch in Ceylon. More overseas branches followed quickly. In 1947, IOB opened a branch in Bangkok and re-opened others. In 1948 United Commercial Bank (see below) opened a branch in Malaya. In 1949, IOB opened a branch in Bangkok.
Then in 1963, The Burmese government nationalized IOB’s branch in Rangoon. In 1973, IOB, Indian Bank and United Commercial Bank established United Asian Bank Berhad in Malaysia. (Indian Bank had been operating in Malaysia since 1941 and United Commercial Bank Limited had been operating there since 1948.) The banks set up United Asian to comply with the Banking Law in Malaysia, which prohibited foreign government banks from operating in the country. Also, IOB and six Indian private banks established Bharat Overseas Bank as a Chennai-based private bank to take over IOB's Bangkok branch.
International expansion slowed thereafter, for a while. In 1992 Bank of Commerce (BOC), a Malaysian bank, acquired United Asian Bank (UAB).
In the new millennium, international expansion picked up once again. In 2007, IOB took over Bharat Overseas Bank. Three years later, Malaysia awarded a commercial banking license to a locally incorporated bank to be jointly owned by Bank of Baroda, Indian Overseas Bank and Andhra Bank. The new bank, India International Bank (Malaysia), will reside in Kuala Lumpur, which has a large population of Indians. Andhra Bank will hold a 25% stake in the joint-venture, Bank of Baroda will own 40% and IOB the remaining 35%.