The Hindu Business Line : Chidambaram asks bank employees to co-operate with reforms

THE Union Finance Minister, Mr P. Chidambaram, has appealed to bank employees to co-operate with the reforms process to strengthen the financial sector and take the economy forward.

He was inaugurating the 1,503rd branch of Indian Overseas Bank (IOB) at a function here on Sunday.

He said the bank employees' misapprehensions have been belied on the introduction of computerisation of the banking system.

The initiative has not only helped the banking sector to grow fast and serve the people better but has also helped increase employment. He reminded that the performance in the insurance sector, pension and capital market depended on the strength and performance of the financial sector.

Complimenting IOB on being one of the top 25 global banks in terms of return on capital employed and achieving the highest net interest margin of 4 per cent, the Finance Minister said the bank, which was in the 14th place at the time of nationalisation with just Rs 50 crore in terms of deposits, has today a total business of Rs 76,721 crore with a net NPA of just 0.94 per cent. This is a proud achievement for a bank which started its first branch in nearby Karaikudi in 1937.

Mr Chidambaram hoped the bank which has introduced core banking solution in 579 of its branches would bring the rest of the branches into the fold soon.

He said the banking sector as a whole has turned in a good performance. He urged students and self-help groups to grow in confidence and start new ventures and provide more employment to people.

Mr Chidambaram distributed loans to 90 beneficiaries to the tune of Rs 83.36 lakh — Rs 59.3 lakh to 75 SHGs, Rs 12 lakh educational loans to 10 students, Rs 7.53 lakh agriculture loans and other loans for Rs 3.55 lakh.

Addressing the meeting, the Chairman and the Managing Director of the bank, Mr T.S. Narayanasamy, said IOB has been largely rural-centric in its focus, giving significant impetus to the movement of self-help groups.

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