The Hindu Business Line : IOB yet to decide on trimming BhOB stake

INDIAN Overseas Bank, which holds 30 per cent in Bharat Overseas Bank, will take a view on offloading part of its stake following the recent RBI stipulation on shareholding by banks.

IOB is likely to appoint merchant bankers in order to fix a valuation in case its shares are actually disposed of. A decision on this front is expected in the next couple of months. Mr S.C. Gupta, CMD, said the situation was quite fluid at the moment. "A number of options could emerge. We will have to choose the best of what are available", he told newspersons here on Tuesday.

The bank plans to focus sharply on agriculture in the months ahead. It hopes to double its agri portfolio over the next three years by harnessing the strengths of its rural branches. IOB's agri-advances stood at Rs 3,407 crore at the end of June 2004 The bank has convened a meeting of regional heads to work out a detailed programme.

"Rural banking has been one of our strengths. The special farm credit package announced by the Government will present a major opportunity for us", Mr Gupta said. IOB has set an agri business target of Rs 4,700 crore this year, he added. The bank is ready to assign more senior officials to handle the increase in agri portfolio.

Malaysia foray

INDIAN Overseas Bank has proposed to establish a presence in Malaysia. It will have to decide whether a rep office will be sufficient for its purposes.

The Malaysia foray will add to IOB's strengths in overseas markets, Mr Gupta stated. The bank has branches in Korea, Singapore, Hong Kong and Colombo. It is in the process of setting up a base in China as well. The host country's approval is expected shortly.

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