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New Delhi, May 6 () State-owned Indian Overseas Bank and Bank of Maharashtra on Wednesday announced a reduction in their marginal cost of funds based lending rate (MCLR). "Our Bank has revised the MCLR w.e.f 10.05.2020 until further review," Indian Overseas Bank said in a regulatory filing. The Chennai-headquartered lender said the MCLR for the benchmark one-year tenor loan has been cut by 0.10 per cent to 8.15 per cent, with effect from May 10. The one-year MCLR is the benchmark for most consumer loans, including personal, car and home. Rates for other tenors, from three months to three years, have been reduced in the range of 0.05-0.10 per cent. No change has been made for overnight and one-month MCLR. Pune-based Bank of Maharashtra reduced the one-year MCLR by 0.10 per cent to 7.90 per cent. In terms of RBI guidelines, the bank has reviewed its lending rates and decided to reduce MCLR with effect from May 7, it said in a filing to the exchanges. For overnight to six-month tenor MCLRs, the rates vary from 7.40 per cent to 7.70 per cent. Meanwhile, Canara Bank has kept the MCLR unchanged, with the one-year benchmark standing at 7.85 per cent. KPM ABMABM

IOB, Bank of Maharashtra cut lending rates

Airtel, SBI, Central Bank of India, IOB and other stocks to watch out for on June 22

Mumbai, Apr 4 () State-owned Indian Overseas Bank (IOB) on Saturday said the government has nominated it for collection of donations for PM-Cares Fund.The Prime Minister's Citizen Assistance and Relief in Emergency Situations Fund (PM-Cares Fund) was set up on March 28 to raise money for combating the Covid-19 crisis and to provide relief to the affected."Indian Overseas Bank (IOB), has been nominated by the government for collection of funds, which will be used to support the community during the Coronavirus outbreak. The funds will be assigned to PM-Cares Fund," the bank said in a statement.The contributions can be made by RTGS, NEFT, IMPS, cheques and demand drafts drawn in favour of PM-Cares Fund.One can also remit contributions directly by electronic clearing system (ECS) to the designated savings bank account of Indian Overseas Bank.All such contributions will be entitled to 100 per cent income tax exemption under Section 80G of the Income Tax Act.Political leaders, corporates, defence personnel, employees of PSUs such as Railways and Bollywood personalities are among a cross-section of organisations and people who have announced their contribution to the PM-Cares Fund.All officials of the external affairs ministry are also donating a day's salary, while some of them are voluntarily donating more.The Army, Navy and Indian Air Force as well as employees of the defence ministry have decided to donate one day's salary totalling around Rs 500 crore. HV BALBAL

Govt nominates IOB for collecting donations for PM Cares Fund

Mumbai, Mar 31 () State-owned banks Punjab National Bank (PNB) and Indian Overseas Bank on Tuesday announced reduction in their lending rates linked to the repo rate by 75 basis points, effective April 1. This follows last week's decision by the RBI to cut the repo rate by 75 bps. Most of the public sector banks have passed on the benefit of the repo rate cut to their customers. "We have decided to pass on the full benefit of the recent RBI's policy rate cut of 75 bps to our borrowers covered under external benchmark-linked product of repo-linked lending rate (RLLR)," PNB said in a statement. The cut is for retail and MSME borrowers, it said. Also, Chennai-based Indian Overseas Bank (IOB) also said it has reduced RLLR by 75 bps. The new RLLR will come down from the existing level of 8 per cent to 7.25 per cent per annum from April 1. "Retail loans (housing, education, vehicle), loans to MSME, which are linked to RLLR, will now be available at cheaper rates," IOB said in a statement. PNB also reduced their MCLR by 30 bps across tenors and will be applicable for the amalgamated entity. PNB is merging Oriental Bank of Commerce and United Bank of India with it from April 1. IOB also said it has reduced its one-year MCLR to 8.25 per cent from 8.45 per cent, effective from April 10. Another public sector lender Union Bank of India said it has reduced its MCLR by 25 bps across all tenors. Its one-year MCLR will be revised to 7.75 per cent, down from 8 per cent from April 1. The new benchmark rates will also be applicable to the customers of Andhra Bank and Corporation Bank, which will be amalgamated into Union Bank of India with effect from April 1. PNB also said it has further reduced its term deposit rates in various maturities bucket with maximum rate of 5.80 per cent for deposits maturing in one year and above. HV HRS

PNB, IOB cut lending rates by 75 basis points

Coimbatore, Feb 14 (): Laying more focus on MSMEsegment, the Indian Overseas Bank (IOB) would increase itslending to the sector from the present Rs 31,000 crore toRs 50,000 crore in a couple of years from now, a top officialof the bank said on Friday. To focus on the MSME, which is the need of the hour,the bank has converted 250 branches, including 100 in TamilNadu, into MSME-centric branches and given training to 700employees for the purpose, IOB managing director and CEOKarnam Sekar told reporters here. Through its outreach programme, the bank officialsare meeting the industrialists in the sector to know about theproblems being faced by them, he said. After getting the suggestions, the feedback would beplaced before the Board of the bank to frame a policy toincrease the MSME portfolio to Rs 50,000 crore, which could bein one year to 24 months, Sekar said. On performance, the bank, which was in the red forthe last four-and-a-half years and making loss in the lasteight quarters, is hopeful of making profit in the fourthquarter of current financial year, he said. In the third quarter ended December 2019, IOBreported a net loss of Rs 6,075 crore as against a net loss ofRs 346 crore during the corresponding quarters in the previousyear on account of higher provisioning of Rs 6,664 crore madefor bad debts, Sekar said. Stating that the gross NPA has been brought down to17.12 per cent at the end of December as compared to 23.76 percent last fiscal, he said that due to provision made duringthe quarter, the net NPA ratio improved to 5.81 per cent,which is less than 6 per cent prescribed by RBI. NVMNVG NVG

IOB focuses on MSME, to lend more in two years: Official

New Delhi, Dec 27 () Indian Overseas Bank (IOB) on Friday said it will get a fresh capital infusion of Rs 4,360 crore from the government in the current financial year for meeting regulatory requirement.
In August, the finance ministry had announced a capital infusion of Rs 3,800 crore in the state-owned lender. This has now been increased by Rs 560 crore.
"The Bank has received vide letter dated December 25, 2019 for release of Rs 4,360 crore towards contribution of the central government in the preferential allotment of equity shares (Special Securities/Bonds) of the Bank during 2019-20 as Government's investment," IOB said in a BSE filing.
Besides, the government has approved infusion of Rs 2,142 crore in UCO Bank in line with what was announced in August this year.
Both the lenders are under the Prompt Corrective Action (PCA) framework of the Reserve Bank.
IOB has reported widening of net loss to Rs 2,253.64 crore for the quarter ended September 30, 2019.
 The bank had registered a loss of Rs 487.26 crore in the year-ago period. In the June quarter of the current financial year, it had posted a loss of Rs 342 crore.
IOB's gross non-performing assets stood at 20 per cent (Rs 28,673.95 crore) of gross advances during the September quarter, compared with 24.73 per cent (Rs 37,109.96 crore) in year-ago same period.
Net NPAs during the quarter stood at 9.84 per cent as against 14.34 per cent in the year-ago period.
The Net NPA level is higher than the RBI's comfortable level of 6 per cent.
The PCA framework kicks in when banks breach any of the three key regulatory trigger points namely capital to risk weighted assets ratio, net non-performing assets (NPA) and return on assets (RoA). DP ANU

Govt ups capital infusion in IOB to Rs 4,360 cr

New Delhi, Feb 18 () Indian Overseas Bank (IOB) will enhance lending to MSMEs as well as give out more home loans, its CEO Karnam Sekar said and expressed hope that the bank will turn profitable soon. "We have devised a formula-based plan so that our recovery position is further improved. Our focus on recovery is yielding good results but our target would be on growing MSME and retail portfolios," Sekar told in an interview here. The Public sector bank, which is under the RBI's prompt corrective action (PCA) currently and has been incurring losses for the past 18 quarters, posted large losses because of huge non-performing assets (NPAs) for the past 7-8 years, caused mainly on account of large exposure in the corporate sector, he said. Sekar added that the bank made the required provisioning. As a result, net NPAs (as percentage of total advances) as on December 2019 has come down below 6 per cent and that is a criterion to bring the bank out of the PCA, he said. The bank's managing director and chief executive officer (MD &amp; CEO) said that the next criterion is to make some profit. "So, this quarter onwards, not only this quarter but also for the coming quarters, we are likely to make profits." "In the MSME segment, we are right now in the range of Rs 31,000 crore lending portfolio, we want to grow that portfolio to Rs 50,000 crore in the medium term of 2-2.5 years. Similarly, in home loans, we are at Rs 13,000 crore level right now and we want to make it to at least Rs 25,000 crore in the similar time frame," he said. While the average ticket size for the retail home loan segment is targeted to be raised to Rs 25-40 lakh from the existing Rs 20 lakh, there will be special focus on growing MSME (micro, small and medium enterprise) loans by targeting textile, automobile and small industries, he added. "With reduction in TAT (turnaround time) and improvement in service, we have good demand for our limited growth. In MSMEs, we have 250 branches with specialised people. We have trained almost 700-800 people and put them in these branches, they will focuss mostly on MSMEs, Sekar said. He said the bank has a focussed approach especially in few clusters like Tirupur and Coimbatore in Tamil Nadu where there are some industries, specifically engineering, automobile and textile. Detailing about the bank's stepped up recovery process, he said the bank has put in place a robust mechanism and created asset recovery branches. "We have created asset recovery branches, we have identified 16 such branches and these NPA accounts have been shifted there. These are being directly controlled from the central office." Apart from that, IOB has also started to auction the pledged properties to recover its outstanding. "We have identified more than 8,000 properties. We have been doing this on a monthly basis from July (2019) onwards, every month we go for mega e-auction. And, in this, we are seeing some good amount of success," Sekar said. He said the bank has also deployed a scheme for one-time settlement, where loans up to Rs 25 crore are eligible. Earlier, the loan amount under this was Rs 3 crore. "There is some haircut but that (one-time settlement) is also yielding good results," Sekar said. On the recovery front, he said it has gone up and the bank has been able to arrest the slippages by strengthening that department and putting up an appropriate structure to monitor from the central office. Slippages in the RAM (retail, agriculture, MSME) segment has come down. It is stablising at Rs 400-500 crore every quarter, and has an overall portfolio of Rs 1 lakh crore. "It has now come down to 1.5-2 per cent, which was earlier 3-4 per cent. We are trying to still reduce that. We are in a much better position from maybe one-and-a-half year earlier. In the corporate sector, slippages were of course there. Even in the December (2019) quarter, we have had one such big account," he said. Sekar added that going forward, we do not see such slippages because we have screened all the accounts. "For the corporate segment, it will be almost near zero. So, that ways, additional NPAs will not be there." He said the company's focus on recovery is yielding good results and the bank's actual operating profit is in the range of Rs 550 crore every quarter. "This recovery, in return, is giving the provision back to us." "In the last four-five years, we had made aggregate provision of more than Rs 40,000 crore. So, out of this Rs 40,000 crore, even if I am able to bring back 5 per cent on an yearly basis, I will be able to recover Rs 2,000 crore every year that will directly add to the profit," he said. With the net NPAs falling below 6 per cent as on December 31, 2019, and expected journey back to profits from this quarter onwards, Sekar hoped the bank would soon be able to come out of the RBI's PCA framework. IOB posted a staggering loss of Rs 6,075 crore for the third quarter ended December 2019, due to higher provisioning for bad loans. There was a net loss of Rs 346 crore during the corresponding quarter of 2018-19. While the gross NPAs have been brought down to 17.12 per cent at the end of December 2019 as compared with 23.76 per cent a year ago, the net NPA ratio improved to 5.81 per cent, which is less than 6 per cent prescribed by the Reserve Bank of India. KPM HRS

IOB raises lending target for home, MSME loans; hopes to be profitable soon: CEO

Apparently, the finance ministry has put <keyword id="107781" type="CITY" weightage="100" keywordseo="Indian-Overseas-Bank">Indian Overseas Bank</keyword> (IOB) under scan after it has cleared out loans worth Rs 3,000 crore in the first half of this year. They are checking the bank's approval process, to be sure that there was no unlawful activity. 
 
"It is being discussed with the bank. There was a review meet and the bank is submitting its response," one of the officials told ET, demanding anonymity. 
 
This is not the first time that IOB has raised eyebrows; thanks to its poor performance, it already comes under the RBI's prompt corrective action (PCA) regime. This happens when a lender crosses threshold limits on the capital to risk-weighted assets ratio (CRAR), net non-performing assets (NPAs) and return on assets (RoA). 
 
Talking of the records, IOB's CRAR at the end of June was 9.75% and it posted a net loss of Rs 551 crore for the July-September quarter. It is also reported that there had been routine drops on some loans, which were made without the requisite approvals by the committee. 
 
Gross NPAs at IOB rose Rs 2,973 crore or 15% to Rs 19,424 crore at the end of September from the previous quarter, as per the financial results of the bank. The gross NPA ratio of the bank was 11%, as compared with 7.35% last year. 
 
Earlier this week, finance minister Arun Jaitley had asked state-run banks to take off bad loans from their balance sheets; he also said that the government was willing to help them by taking the corrective measures needed. 
 
<a href="http://suhrutu.in/wp-content/uploads/2015/01/Bank-logo-IOB.jpeg">Image source</a>

This Indian bank is attracting the Govt’s attention for all the wrong reasons

Ever since demonetization was announced, more than 200 people and companies have deposited unaccounted money amounting to Rs 600 crore in <keyword id="20154" type="ORGANIZATION" weightage="100" keywordseo="tamil-nadu">Tamil Nadu</keyword> and Puducherry. While most deposits have been made in rural areas of the state, some of the deposits were made at the banks in the suburbs of Chennai. 
 According to a TOI report, a person at <keyword id="1264335" type="CITY" weightage="20" keywordseo="Tiruchengode">Tiruchengode</keyword> in <keyword id="6358688" type="CITY" weightage="20" keywordseo="Namakkal">Namakkal</keyword> district deposited Rs 246 crore in a branch of the <keyword id="107781" type="CITY" weightage="20" keywordseo="Indian-Overseas-Bank">Indian Overseas Bank</keyword>."We were following him for more than 15 days after finding that he had deposited cash in a rural branch of the IOB. First, he tried to hide, but after a few days he agreed to join the <keyword id="3895682" type="UNKNOWN" weightage="20" keywordseo="pradhan-mantri-garib-kalyan-yojana">Pradhan Mantri Garib Kalyan Yojana</keyword> (PMGKY) and pay 45% of the total money as tax. As per PMGKY, 25% of the money will be retained with the government without any interest," a senior I-T investigation wing official told TOI. 
 "In TN and <keyword id="6469289" type="ORGANIZATION" weightage="20" keywordseo="Pondy">Pondy</keyword>, we found 28,000 accounts to be suspicious and some of the accounts had deposits in cash to the tune of Rs 85 lakh or move. In the first instance, we send a mail to the account holder asking for details. Most of them have replied and some of the cases have been closed or they have joined the PMGKY scheme accepting that the cash was black money," he said. 
 
The officials have decided to wait till end of March. If the suspicious accounts don’t come forward on their own, the bank would ask them to pay 83.5% fine.

This Tamil Nadu man just
deposited Rs 246 crore of unaccounted money in Indian Overseas Bank

New Delhi, July 2 () Public sector Indian Overseas Bank (IOB) on Thursday said its managing director and chief executive Karnam Sekar retired on June 30. The lender in a regulatory filing said "Karnam Sekar has demitted office as MD &amp; CEO of the bank on June 30, 2020, being the date of his superannuation". Karnam had joined the bank as an OSD (officer on special duty) and whole-time director on April 1, 2019 and was elevated as MD and CEO on July 1, 2019 after the retirement of Subramaniam Kumar. Sekar was appointed as OSD of IOB after merger of Dena Bank and Vijaya Bank into Bank of Baroda. He was MD and CEO of Dena Bank since September 21, 2018. Prior to that, he was deputy managing director and chief credit officer in State Bank of India, heading its Highest Credit Committee. In SBI, he was also responsible for formulating loan policy of the bank. Sekar had joined State Bank of India as Probationary officer in December 1983. IOB posted a standlaone net profit of Rs 143.79 crore in the last quarter of fiscal ended March 2020, as it was able to bring down its bad loan proportion significantly. KPM MKJ MKJ

Karnam Sekar retires as Indian Overseas Bank MD & CEO

New Delhi, Jun 7 () Public sector lender Indian Overseas Bank has cut marginal cost of funds based lending rate (MCLR) by up to 0.30 per cent across all tenors, which will bring down cost for consumer loans. The benchmark one-year MCLR, against which most of the consumer and retail loans are priced, has been cut by 0.20 per cent from June 10, Indian Overseas Bank (IOB) said in a release on Sunday. IOB reduced its interest rate on loans linked to MCLR by 30 basis points in overnight tenor and by 20 bps in one month to one year tenors. Hence, loans linked to MCLR will become cheaper, said the Chennai-based state owned bank. The bank has also reduced its interest rate on loans linked to Repo Linked Lending rate (RLLR) from 7.25 per cent to 6.85 per cent per annum, IOB said. Retail loans (housing, education, vehicle etc) and credit to micro, small and medium enterprises (MSMEs), which are linked to RLLR, will now be available at cheaper rates, it added. KPM BAL BAL

Indian Overseas Bank cuts MCLR by up to 30 bps

New Delhi, Apr 27 () Indian Overseas Bank (IOB) on Monday said it has introduced a special borrowing programme for self help groups to help them tide over the challenges inflicted by COVID-19.The maximum loan amount is Rs 5,000 per member of a self help group (SHG) with a cap of Rs 1 lakh for the group. The bank said SHGs with a good track record and a history of minimum two loans from IOB will be eligible for this loan facility, which can be availed till June 30, 2020. As per the bank's rule, only those SHGs whose existing loans are standard and performing as on March 1, 2020 are eligible to avail loan under this special scheme.The state-owned lender said interested borrowers can apply through branches directly or through business correspondents.IOB said the loans would be sanctioned and disbursed within six working days. The loans are to be repaid in 30 EMIs after initial moratorium of six months, it said, adding the rate of interest for these loans is 9.4 per cent.The bank said it will not charge any processing fee or pre-payment fee for this loan scheme."SHG borrowers are an important part of the economy...we are working to the best of our ability to extend our support to SHGs and help them in the wake of Coronavirus. Our efforts are aligned with the Government of India's advice to help all sectors in the economy to function properly and sustain amidst the crisis at hand. These loans will assist the SHGs pass through the difficult times they are encountering in the present scenario," IOB MD&amp;CEO Karnam Sekar said.Also these loans will have no correlation with the corpus of the SHG. Moreover, to encourage this segment of borrowers no additional security will be required from the group. KPM ANUANU

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IOB, Bank of Maharashtra cut lending rates

PTI

Airtel, SBI, Central Bank of India, IOB and other stocks to watch out for on June 22

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Govt nominates IOB for collecting donations for PM Cares Fund

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PNB, IOB cut lending rates by 75 basis points

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IOB focuses on MSME, to lend more in two years: Official

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Govt ups capital infusion in IOB to Rs 4,360 cr

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IOB raises lending target for home, MSME loans; hopes to be profitable soon: CEO

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This Indian bank is attracting the Govt’s attention for all the wrong reasons

BI India Bureau

This Tamil Nadu man just deposited Rs 246 crore of unaccounted money in Indian Overseas Bank

BI India Bureau

Karnam Sekar retires as Indian Overseas Bank MD & CEO

PTI

Indian Overseas Bank cuts MCLR by up to 30 bps

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COVID-19 : Indian Overseas Bank launches special scheme for SHGs

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