IOB rules out follow-on IPO

Kochi, May 22 (UNI) Indian Overseas Bank will be depending on its impressive' internal fund generation instead of follow-on IPO to back the expansion plans, according to its chairman and managing director T S Narayanasami here today.

Talking to newsmen, he said the banking sector was on a tightrope walk with stock market, real estate sector and gold prices moving up fast and resources in the banks going scarse.

The IOB which registered huge growth in its business was hoping to garner additional Rs 3500 crore of deposits this year. The current business volume crossed Rs 10,000 crore mark and deposits rose to Rs 50,529 crore during the year 2005-06 against Rs 44,241 of the previous year, he said.

We have sufficient internal funds for expansions. We will cross 9 per cent in capital adequacy in June this year to cope with the Basel II norms,'' he said.

The chairman earlier opened its Field General Manager's office, which has powers to take decisions at the highest level instead of waiting for the head office clearance, with a view to boost the overall business in Kerala.

He said the bank with its 118 branches in Kerala was hoping to improve its business to Rs 5500 crore during the year from the current figure of Rs 3800 crore.

Rating its gold import scheme last year as big success, the chairman said the bank would import gold worth Rs 300 crore this year also from Switzerland.

He said the bank would improve its credit ratio from 43 per cent with thrust on priority sector but would go slow on housing sector which reported highest defaulting rate in the industry.

UNI JA DK1459