Following the directions by the Union Ministry of Finance to help borrowers in the retail and MSME (micro, small and medium enterprises) segments to tide over the rising interest rates, Chennai-based Indian Overseas Bank has decided to increase the repayment period for these borrowers.

Addressing a ‘Meet the Press’ programme, which was organised by the Dakshina Kannada Working Journalists Association here on Saturday, Mr M. Narendra, Chairman and Managing Director of the bank, said the board of directors of the bank took a decision on Friday to increase the repayment period for retail and MSME borrowers.

He said the Finance Ministry does not want these sectors to get affected by the increase in interest rates. Stating that all the banks are forming their policies on increasing the repayment period for these customers, he said the IOB board approved this on Friday.

Credit growth

On the credit growth, he said it is a little subdued in the current economic scenario. However, he clarified that there is no problem in credit demand from MSME, retail and agriculture sector.

Mr Narendra hoped that IOB would be able to achieve a credit growth of 22 per cent against the industry projection of 18 per cent this fiscal.

Stating that the growth of deposits and advances of the bank was higher than that of the industry’s, he said IOB’s deposits grew 9.68 per cent during the period between March and August against the industry growth of 5.51 per cent. During the same time, IOB’s advances grew 9.15 per cent (compared with industry growth of 2.68 per cent), he said.

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