The Hindu Business Line : IOB saw many a change under Narayanasami

Chennai June 5 As he moves to his new job — as Chairman and Managing Director of Bank of India — Mr T.S. Narayanasami leaves Indian Overseas Bank with a strong foundation for achieving its targets for the current year — total business of Rs 1.36 lakh crore and net profit of Rs 1,200 crore.

In the two years that Mr Narayanasami was the CMD, IOB's total business grew 65 per cent from Rs 70,500 crore in 2004-05 to Rs 1,16,663 crore last year. Its net profit increased 54 per cent from Rs 651 crore to Rs 1,008 crore, over the period.

Both the total business and net profit were at record levels last year, as was the recovery from NPAs — Rs 444 crore. During his Chairmanship, Mr Narayanasami brought several changes at IOB, notable of which was the introduction of the concept of segmentation of branches. All branches were categorised into resource centres, profit centres, priority sector centres and other centres. Targets were given only for business opportunities that existed in the `command areas' of the different types of branches.

Mr Narayanasami was also instrumental in IOB focussing on fee-based income. Under his charge, IOB tied-up with nine mutual fund companies for marketing their products. It also became a corporate agent for LIC and United India Insurance. During the two-year period, IOB also revived a previous proposal to start a financial subsidiary and secured the RBI approval for it. It got into online trading and broking and depository participant services. A Ernst & Young study of March ranked IOB the first in terms of profitability and third in terms of overall performance among public sector banks.

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