Indian Overseas Bank is expecting a capital infusion of up to Rs 1,400 crore from the Government by February, said Mr M. Narendra, Chairman and Managing Director.
“We have made a request to the Government for capital infusion of up to Rs 1,400 crore,” he said at a press meet to announce the details of this year's annual bankers' meet, BANCON 2011.
Pointing out that the earlier infusion had come in the last quarter, the IOB chief said this time too he expects an allocation to come in by the end of the current fiscal.
The bank got Rs 1,053 crore from the government last fiscal, which saw the government's stake in the bank go up to 66 per cent.
On savings bank deregulation, Mr Narendra said that the bank is studying the situation and considering revising savings bank rate. Further, to protect margins, IOB may look to lower the interest rates on bulk deposits.
Rising interest rates on term deposits have resulted in a decline in the current account and savings accounts (CASA), pushing the bank's CASA ratio down to 27.46 per cent as on September 30 from 33.09 in the corresponding year-ago period.
More branches
Mr Narendra said that the bank is planning to open 300 branches during this year to achieve its CASA ratio target of 35 per cent.
The bank has sought Reserve Bank of India's permission to upgrade its operations in Dubai and China, and is also planning to set up branches in Africa, Australia and New Zealand.
Bankers' conference
On the Bankers' Conference, Mr Narendra said his bank is the host of the conference, whose theme is ‘Competing in the defining decade for Indian banking'. Bancon, which will be conducted by the Indian Banks' Association, will be held in Chennai on November 4, 5 and 6.
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