Money & Banking

Indian Overseas Bank to focus on MSME-lending: CEO

PTI Coimbatore | Updated on February 14, 2020 Published on February 14, 2020

Laying more focus on the MSME segment, Indian Overseas Bank (IOB) will increase its lending to the sector from ₹31,000 crore at present to ₹50,000 crore in a couple of years from now, said a top official of the bank on Friday.

To focus on MSMEs, the bank has converted 250 branches, including 100 in Tamil Nadu, into MSME-centric branches, and has given training to 700 employees for the purpose, said IOB Managing Director and CEO Karnam Sekar.

Through its outreach programme, bank officials have been meeting industrialists in the sector to learn more about the problems being faced by them, he said.

After getting the suggestions, the feedback will be placed before the board of the bank to frame a policy to increase the MSME portfolio to ₹50,000 crore, which could be in one year to 24 months, said Sekar. On performance, the bank, which was in the red for the last four-and-a-half years, is hopeful of making profit in the fourth quarter of the current financial year, he said.

In the third quarter ended December 2019, IOB reported a net loss of ₹6,075 crore against a net loss of ₹346 crore in the corresponding quarter of the previous year, on account of higher provisioning of ₹6,664 crore, said Sekar.

Stating that gross NPA has come down to 17.12 per cent at the end of December against 23.76 per cent last fiscal, he said due to provision made during the quarter, the net NPA ratio improved to 5.81 per cent, which is less than the 6 per cent prescribed by the RBI

Published on February 14, 2020

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.