>Indian Overseas Bank (SUNIDHI)

COMPANY DESCRIPTION

IOB had the unique distinction of commencing business in 10th February 1937 (on the inaugural day itself) in three branches simultaneously - at Karaikudi and Chennai in India and Rangoon in
Burma (presently Myanmar) followed by a branch in Penang. At the dawn of Independence, IOB had 38 branches in India and 7 branches abroad. In 2006, it acquired Bharat Overseas Bank.
In September 2000, the bank had come out with an offer of 11.12 crore equity shares of Rs 10 each at par, aggregating to Rs 111.20 crore. It came out with its second initial public offer of 10 crore equity shares of Rs 10 each for cash at premium of Rs 14 per share aggregating Rs 240 crore through the fixed price route in October 2003.

Highlights:

● IOB has a dominant presence in south India, which accounts for 45% of its branch network. Currently, the bank has 1, 894 branches across the country. It has international presence in eight countries.

● Total business as on December 31, 2008 rose from Rs 1, 33, 413 crore as at end December 2007 to Rs 1, 62, 575 crore — a growth of 22%.

● Total deposits grew by 15% to Rs 90, 866 crore from Rs 78, 791 crore. Advances spurted 31% in Q3FY09 to Rs 71, 709 crore from Rs 54, 6222 crore (YoY). As at December 31, 2008 IOB’s CASA (current accounts saving accounts) is marginally down to 29.23% from 30.93% (YoY).

● IOB, with a capital adequacy ratio of 13.34%, has comfortable capital to support the envisaged growth. Gross & Net NPA stood at 2.49% and 1.30% as on December 31, 2008.

● IOB entered into non life insurance business with equity participation of 19% in a joint venture Universal Sompo General Insurance Co. The bank along with bank of Baroda (BOB) and Andhra Bank (AB) has planned to open overseas bank in Malaysia. It will be a special purpose vehicle in which IOB and AB could hold equity of 30% each and BOB could hold 35% of equity stake.

● The overseas bank would be operational by end of financial year 2009 subject to necessary regulations. The new joint venture is expected to commence operations by the end of 2009.

To see full report: INDIAN OVERSEAS BANK