During the release of first quarter performance at a press conference Indian Overseas Bank (IOB) Chairman and Managing Director S. A. Bhat informed that bank is planning to open a banking company in Malaysia in association with Bank of Baroda and Andhra Bank. In the press conference Mr. Bhat told the minimum capital for the banking venture will be $100 million (Rs. 400 crore), with IOB contributing 30 per cent and the balance by the two bankers. He informed that the banking company will be operational by the end of the current financial year, subject to necessary formalities.
Chairman informed that bank has plans to open two more overseas branches — one in Sydney (Australia) and the other in Houston (U.S.), — besides a representative office in Dubai.
By the end of June 30 bank has done a total business of Rs. 1, 48,420 crore, representing a growth of 24.9 per cent over the same period last year. Giving out the figures he said deposits have rose by 21.1 per cent to Rs. 85,000 crore, advances showed a rise of 30.5 per cent at Rs. 63,419 crore.
Mr Bhat said whereas the working profit for the first quarter has declined sharply to Rs. 241.18 crore from Rs. 409.17 crore because of loss booked on account of inter-segment category transfer of securities and loss on sale of securities and provision for wage arrears, due to the possible increase in salaries of staff.