IOB targets 22% credit growth

Indian Overseas Bank expects to achieve 22 per cent credit growth this fiscal with focus on agriculture and small and medium enterprises (SMEs).

The bank is celebrating the month of August as ‘Kissan Month' aimed at incremental lending to the agriculture sector. A sum of Rs 300 crore has already been disbursed as agricultural loans. Under the Credit Guarantee Scheme, SMEs are given loan up to Rs 1 crore, without collateral, said Mr M. Narendra, Chairman and Managing Director.

He spoke to

Business Line at the Madurai Airport, following a day-long hectic schedule at Madurai and Virudhunagar where as a sponsor bank, he declared 100 per cent CBS compliance of Pandyan Grama Bank with NEFT facility and flagged off a marketing van for the bank and inaugurated a refurbished branch of IOB.

He said the bank, which is celebrating its platinum jubilee this year has taken a number of initiatives to discharge its corporate social responsibility, providing funds especially for the development of infrastructure in schools and sponsoring of conferences and workshops.

On the current economic scenario, he said the Reserve Bank of India's effort to rein in inflation is necessary. Any adverse impact would be felt only in the short term.