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Showing posts with label Indian Overseas Bank. Show all posts
Showing posts with label Indian Overseas Bank. Show all posts
Tuesday, 18 July 2017
Monday, 24 October 2016
public sector banks
08:39
Three PSU banks cut MCLR
Three PSU banks cut MCLR
NK Bank, Chennai, Oct 5 : Three public sector banks -- Indian Overseas Bank (IOB), Bank of India and Syndicate Bank -- on Wednesday announced reduction in their marginal cost of funds-based lending rate (MCLR) for various tenors.
City-based IOB, in a statement issued here, said its MCLR for one year is reduced to 9.50 per cent from 9.55 per cent with effect from October 1.
Similarly, Syndicate Bank said it has cut its MCLR for one year to 9.45 per cent from 9.55 per cent effective from October 7.
On its part, Bank of India said its one year MCLR will be 9.35 per cent effective from October 7.
Source:NewKerala
Friday, 30 September 2016
Indian Overseas Bank
07:51
The Central Government appoints Shri R. Subramania Kumar as Executive Director of Indian Overseas Bank.
The Central Government appoints Shri R. Subramania Kumar as Executive Director of Indian Overseas Bank.
In exercise of the powers conferred by clause (a) of sub-section (3) of Section 9 of The Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970/1980 read with sub clause (1) of clause 3 and sub clause (1) of clause 8 of the Nationalized Banks (Management and Miscellaneous Provisions) Scheme, 1970/1980, the Central Government appointed Shri R. Subramania Kumar (DOB: 15.06.1959), Executive Director, Indian Bank as Executive Director, Indian Overseas Bank with effect from his taking over the charge of the Indian Overseas Bank and upto 21.01.2019 or until further orders, whichever is earlier.
Source:PIBNEWS
Thursday, 11 August 2016
Indian Overseas Bank
08:05
Indian Overseas Bank NPA at 20%: Will govt burn a hole in taxpayers' pockets again?
Indian Overseas Bank NPA at 20%: Will govt burn a hole in taxpayers' pockets again?
Is Chenna-based public sector lender Indian Overseas Bank (IOB) staring at a crisis situation? Let’s look at the numbers. At the end of the June quarter, the total gross non-performing assets (GNPAs) of the lender have touched a record high of 20.48 percent of its total loan book (of Rs 1,65,556 crore). In other words, one out every five rupees lent by the bank has now gone bad. According to a Firstpost analysis, that’s the highest level of bad loans in at least 14 years. Total losses of the bank, in the last one year (four quarters put together) stood at Rs 4,467 crore. The numbers indeed say it is.
To be sure, at present, there is no immediate threat to the depositors and investors as the government has recently infused some money into the bank. But the situation can turn serious going ahead if the lender fails to generate money on its own or from the government.
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Monday, 28 March 2016
MMTC
11:20
Indian Overseas Bank starts distribution of India Gold Coins
Indian Overseas Bank starts distribution of India Gold Coins
State-owned Indian Overseas Bank (IOB) has become the first lender to start distribution of recently launched Indian Gold Coins (IGC).
State-owned Indian Overseas Bank (IOB) has become the first lender to start distribution of recently launched Indian Gold Coins (IGC).
Available in denominations, 5, 10 and 20 grams, the coins are distributed through limited branches, IOB said in a statement.
It is the first bank to enter into agreement with MMTC for sale of IGC, the bank claimed.
Indian Gold Coins is the first-ever national gold offering by the government and was launched by Prime Minister Narendra Modi in November.
The Indian Gold Coin is of 24 carat purity, 999 fineness and has the national emblem of Ashok Chakra engraved on one side and the face of Mahatma Gandhi on the other.
As part of Make in India drive, the coin is minted by the Security Printing and Minting Corporation of India Limited (SPMCIL) and hallmarked by the Bureau of Indian Standards (BIS).
Source:Financial Express
Wednesday, 13 January 2016
Indian Overseas Bank
05:04
Indian Overseas Bank to Shut 10 Regional Offices
Indian Overseas Bank to Shut 10 Regional Offices
New Delhi: Indian Overseas Bank (IOB) on Monday said it will rationalise the number of its regional offices by closing 10 such offices to improve efficiency.
"Our Bank at its meeting held in 12.12.2015 decided to rationalise the number of regional offices in the country by reducing 10 regional offices from existing 59. The estimated date of closure is 1.3.2016," the public sector lender said in a clarification to the BSE.
"The closure of regional offices is for optimum utilisation of resources and is administrative decision within the bank... it will result in substantial reduction in administrative costs," it further said.
Indian Overseas Bank said it has 59 regional offices and 7 zonal offices, which provide support and guidance to branches, that are undertaking business activities and are required to monitor the performance pf branches.
IOB said in October last year that the Reserve Bank of India had initiated a prompt corrective action on the bank.
The RBI specified certain regulatory trigger points, as a part of prompt corrective action (PCA) framework, in terms of three parameters - capital to risk weighted assets ratio (CRAR), net NPAs (non-performing assets) and return on assets (RoA) - for initiation of certain structured and discretionary actions in respect of banks hitting such trigger points.
Gross NPAs of the bank rose to 9.40 per cent for the quarter ended June 30. IOB's gross non-performing assets rose to 8.30 per cent at the end of March 31, from 4.84 per cent a year ago, according to provisional RBI data taking into account domestic operations of banks.
At 1:12 p.m., shares in Indian Overseas Bank were trading 0.84 per cent lower at Rs 29.35 apiece on the BSE, whose benchmark Sensex index was down 0.68 per cent.
Source:NDTV
Friday, 23 October 2015
Indradhanush
09:28
Mission Indradhanush at risk? RBI puts Indian Overseas Bank on watch due to poor finances
Mission Indradhanush at risk? RBI puts Indian Overseas Bank on watch due to poor finances
Within two months of the then financial services secretary Hasmukh Adhia saying, "Our goal is to make state-run banks efficient, on par with or even better than private banks," the banking regulator says the eight-decade old Indian Overseas Bank's financials are so weak that it needs special attention.
The Reserve Bank of India's recent ordering of 'prompt corrective action' on the Chennai-based bank raises the question of whether the government's initiatives under the Indradhanush programme to revive the fortunes of the segment of banking owned by the state are enough.
The 27 state-run banks may have the same owner and may be afflicted by the same problem called bad loans. But the path of revival for each of them needs to be different and the programme unveiled on August 14 may not be sufficient. "All big strategic decisions are taken by the government of India," says PJ Nayak, former chief of Axis Bank and chairman of an RBI panel on reviving state-run banks.
"A bank has 100 different ways of going about its business. You cannot use the same model for everyone. You also cannot air drop directors on boards of public sector banks without the CEO knowing about it, and expect that they will work well," Nayak said, in a keynote address at a conference in Mumbai on Saturday.
To be sure, the government on August 14 launched a project code named Indradhanush that would professionalise state-run banks. It has since appointed private sector bankers as heads of Bank of Baroda and Canara Bank. The interference from the government in running of banks has reduced, and the regulator itself says that these banks need to differentiate themselves for survival and pursuing a one-size-fits-all strategy is a road to ruin.
The government might appear to have taken giant strides by its own yardstick, but going by the enormity of the situation they are just baby steps, and not enough to turn this Titanic called public sector banks.
It is "half hearted, half-baked and putting the cart before the horse," says Krishnamurthy Subramanian, assistant professor of finance at the Indian School of Business, who was also a member of the Nayak committee.
IOB's 8.3% of bad loans, 10.11% of capital adequacy, and Rs 454 crore losses for fiscal year 2015-16 prompted the regulatory curbs on hiring, expansion, and lending.
But the irony is that IOB is not alone. If the central bank's action is extrapolated, some lenders such as Bank of Maharashtra, Andhra Bank, Central Bank of India and Allahabad Bank may also be close to such a regulatory action. If state-run banks were privately held and the accounting norms were not liberal, the system would have been insolvent, given the amount of stressed assets.
Stressed assets in public sector banks, which include non-performing assets and restructured loans, at the end of June, were 13.4% as compared to just 3.4% for private sector banks. Stressed assets were 15% for 11 banks; it was as high as 19% for one bank, says Nayak.
Apart from banks' own poor practices in terms of assessing credit and lack of enthusiasm in recovering from defaulters, the legal system has been aiding them hide the magnitude of the problem.
"Laws such as Sarfesi have helped banks to transfer their bad loans to ARCs but it has meant that assets have transferred from one bucket to another," Nayak said, on the sidelines of the conference.
"Laws on bankruptcy will not help unless we speed up resolutions." The government is working on a bankruptcy law on the lines of the most appreciated US laws that allow for companies to continue functioning by reworking debt, and emerge fitter.
But that may be just one point. A bigger one is that the numerous banks which have sprung up for historic reasons, the duplication of branch network between various state-owned banks and lack of distinction of services also make them lose out to their private peers.
Many believe that amalgamation of various banks based on their geographic strengths or weakness would make them more efficient, and reduce the costs of operations.
"This is time to merge banks and reduce costs because instead of paying salary to two CEOs, you pay for one, and instead of having two branches in the same vicinity, you can do with one," says DK Mittal, a former financial services secretary.
State Bank of India, the biggest one, has five associate banks. But the management for various reasons, including resistance from staff, has been reluctant to merge them with it despite the fact that it could lead to hundreds of crores of cost savings and avoid an overlap of branches.
But how does one choose which bank to merge with which one? Is there no scope for state-run banks to become more efficient and no future for most of them? Not at all. There are franchisees that have earned an enormous amount of customer trust, which private sector banks may take decades to build.
Some like SBI, Bank of Baroda, or a Punjab National Bank have sticky clientele, which make them attractive franchisees.
"Those banks with high Casa (current accounts savings accounts) and good net interest margins will not face problems," says Pratip Chaudhury, former chairman of SBI. "The way forward is to merge banks within the same regions. This will not cause unnecessary disruption. It is better than doing nothing."
With the government splitting the role of chief executive and that of chairman, there is hope that each bank will evolve its own strategy and begin to practise different methods and go beyond the signboards. The two new CEOs from BoB and Canara Bank, though, are yet to reveal their strategies.
Some believe the government may have chosen an easier route to reforms when it provided for creating a Bank Boards Bureau with bureaucrats. A bureau should comprise people who do the recruitment followed by a bank investment company to hold the stake of banks. Finally when all banks are empowered then individual banks should decide on splitting the chairman and CEO posts, says Subramanian of ISB.
"This is just like the Indian cricket team being picked by the BCCI president," says Subramanian. "You can only imagine the team we get. Only a cricketer can judge a cricketer and ditto for bankers. Bureaucrats cannot do it."
In the meantime, IOB-like events may keep happening and banks may be nursed back to health as it happened with United Bank of India in Kolkata. And the staterun banks may get capital and keep floating with the help of devoted customers. But for them to play an active role for the next few decades in the Indian economic revival, the Indradhanush needs to be sharpened; the RBI probably needs to be guiding the government ownership lower, to even 26%.
"The government as owner will not act unless they are under pressure since there is no accountability for them," says Mittal the bureaucrat. "The government expects action from the RBI as regulator and the RBI expects the government to act as owner. It's a fault line and nobody wants to walk over it."
Source:BankUpdates.
Tuesday, 8 September 2015
MUDRA Credit Card
22:54
Indian Overseas Bank launches Rupay MUDRA Debit Card
Indian Overseas Bank launches Rupay MUDRA Debit Card
State-run Indian Overseas Bank (IOB) has launched Rupay MUDRA Debit Card under the Pradhan Mantri MUDRA Yojna, targeting the micro, small and medium enterprises (MSMEs).
According to the scheme, the micro units can utilise the card for meeting working capital requirements. The cards can be used at ATMs, point of sales and for online transactions, the city-based bank said in a statement today.
"The bank has disbursed Rs 266.15 crore against the annual target of Rs 1,495 crore for the current financial year," its Managing Director and CEO R Koteeswaran said.
"Under the Pradhan Mantri MUDRA Yojna, the bank achieved 26.04% in Tamil Nadu (during the year)", the statement said.
The bank has distributed sanction letters to several MSME applications in the state totalling Rs 50 crore, it added.
