Following directions from the Union Ministry of Finance to help borrowers in retail and MSME (micro, small and medium enterprises) segments to tide over the problem of rising interest rates, Indian Overseas Bank has decided to increase the repayment period for these borrowers.
Addressing a ‘Meet the Press' programme, organised by the Dakshina Kannada Working Journalists Association here on Saturday, Mr M. Narendra, Chairman and Managing Director of the bank, said that the board of directors has decided to increase the repayment period for retail and MSME borrowers.
Credit growth, he said, was subdued in the current economic situation. However, there was no dearth in credit demand from MSME, retail and agriculture sectors.
Mr Narendra hoped that IOB would be able to achieve credit growth of 22 per cent against the industry projection of 18 per cent this fiscal.
BRANCH EXPANSION
The bank plans to open 55 per cent of its branches in rural and semi-urban areas during the current financial year.
The bank plans to open 400 branches, of which 186 will be set up exclusively in un-banked and under-banked areas having a population of less than 10,000.
The total number branches will then go up to 2,600, he said. The bank has 2,208 branches as of August 31.
On financial inclusion, he said all the 1,235 villages allotted to the bank have been covered under the programme. The bank is engaging the services of 1,142 business correspondents for this purpose.
The bank, which has 1,210 ATMs, plans to increase it to 3,000 at the shortest possible period.
The bank is exploring opportunities to open branches in Africa and West Asian countries, Mr Narendra said.