Further equity dilution by 2003 - IOB CMD

By Our Special Correspondent

HYDERABAD, OCT. 13. Keeping in view future plans and capital adequacy requirements, Indian Overseas Bank (IOB) will take a decision by October 2002 on further dilution of Government holding, which could possibly be in 2003, according to Mr. S. C. Gupta, Chairman and Managing Director.

The bank had gone in for an initial public offering in September 2000 after which the Government still retains 75 per cent of the equity while 25 per cent is with the public. Its CAR is now over 10 per cent.

Addressing a press conference here on Saturday, Mr. Gupta said the bank was on course to achieving its targeted 18 per cent growth for March 2002, taking total business to Rs. 50,000 crores from Rs. 42,000 crores in March 2001.

It is targetting a reduction of Rs. 200 crores in NPAs, which stood at Rs. 1,500 crores in March 2001. In addition, the bank expects a Rs. 50 crores `upgradation'.

The bank has a net NPA of 7 per cent and gross NPA of 11.8 per cent. Under the one-time settlement scheme, it has settled cases of Rs. 115 crores till September - of which recovery was to the tune of Rs. 42 crores, he said.

Consequent to the economic slowdown, the bank had refocused on retail segment-housing loans, home decor loans, education loans and car loans. It had targeted Rs. 400 crore housing finance for this year and achieved Rs.157 crores so far. So far it had given Rs. 40 crore worth education loans. Under the `liquirent' scheme to finance future recivables of rent, it had advanced Rs. 70 crores till September, the chairman said.

The bank had also mobilised about Rs. 500 crores under the savings bank segment during June-September as part of its efforts to cut down the cost of financing, he said.

Send this article to Friends by E-Mail

Section  : Business
Previous : Fostering new incubator models
Next     : UTI Sept. redemptions at Rs. 426 cr.