The Hindu Business Line : IOB to sell gold coins

INDIAN Overseas Bank proposes to retail gold coins, with an eye on the commission income. The bank's Chairman and Managing Director, Mr T.S. Narayanasami, estimates the income at Rs 10 crore in the first full year of the plan's implementation.

In an informal chat with Business Line today, Mr Narayanasami said gold was turning out to be a good investment opportunity and many would be willing to buy it as the purity is assured by the bank.

In its initiative to beef up NPA recoveries, the bank has formed a scheme - Euro, which stands for `each (of) us recovers one' account.

The scheme, meant to goad employees to go after defaulters, comes with incentives for performers.

The bank expects a boost in its recoveries because of the settling of the Standard Motors' account. The bank is likely to get Rs 40 crore out of the sale proceeds of the Standard Motors property in Chennai.

Mr Narayanasami said that IOB's total business (deposits plus advances) grew by Rs 10,000 crore in the first nine months of the current year. In the third quarter alone, it grew by about Rs 4,500 crore, of which advances accounted for Rs 1,500 crore.

No-frills account: Today, the bank announced the launch of a `no-frills account with a difference'. Rather than opening an account with a Rs 5 deposit and keeping it idle, IOB intends to help account holders engage themselves in economic activity, thus raising the deposit and advance potential of each account.

Accordingly, the bank has chosen three districts in southern Tamil Nadu, where the bank has rural training institutes. The bank has also pressed into service a van — "bank on wheels".

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