The Hindu Business Line : IOB mulls branch in Gulf for NRIs

INDIAN Overseas Bank is exploring the possibility of opening a branch in the UAE to serve NRI customers in the Gulf region, according to its Chairman, Mr S.C. Gupta.

Mr Gupta, who is in Abu Dhabi, told Business Line that following useful discussions on the possibility of opening a branch in the UAE with the UAE Central Bank Governor, Sultan Nasser Al Suweidi, IOB will make an application to the RBI. "Our talks with Mr Suweidi were helpful; he was responsive and said clearances for branches are given on merit. IOB is contemplating this move seriously as we have a large number of NRI customers from this region," he said.

Mr Gupta indicated that IOB has good international exposure now, having opened two branches in Hong Kong and one each in Korea, Singapore and Colombo. "There's a lot more exposure now and with 400 branches now having online facilities, it would be easier to serve customers in this region as well," he said.

IOB currently has a tie-up with the UAE Exchange Centre here and eight other exchange houses in the Gulf States. Computerisation has helped quicker service operations in tie-ups with these exchange companies, he said.

The bank's NRI deposits total around $450 to $500 millionwith the majority of the NRI customers from South India, Mr Gupta said.

In a bid to provide value-added services, IOB has tied up with TTK Services Pvt Ltd in Kochi to provide NRI customers with healthcare and property management services.

Mr Gupta also referred to the excellent response from NRIs to the bank's second public issue, with the total allocation of Rs 24 crore for NRIs being oversubscribed two and a half times to reach Rs 50 crore.

IOB earned an operating profit of Rs 622.61 crore for the first half of the current fiscal ending September 30, 2003. The bank earned a net profit of Rs 293.40 crore for the period.

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