Indian Overseas Bank seeks Gulf expansion

The lender is planning to raise $1bn via medium-term notes in various tranches to increase its Tier-I capital in compliance to Basel II capital requirements.

Indian Overseas Bank (IOB) is a leading public sector bank based in Chennai, India. Currently the bank has 2,019 branches across India. M. Narendra took charge as Chairman and Managing Director of Indian Overseas Bank on November 1 last year.

IOB is planning to increase its branches to 3,000 and achieve an equal number in automated teller machines (ATMs) across India by next financial year.

The bank has on its expansion radar African and other Asian countries. IOB also intends to open branches in Gulf countries.

IOB is planning to raise $1 billion by way of medium-term notes (MTN) in various tranches. The bank is looking to increase its Tier-I capital, and has approached the government for Rs140 million ($3.08 million) of additional capital.

In a recent interview with Gulf News, Narendra said Indian banks have emerged stronger from the global financial crisis thanks to strict compliance to Basel II capital requirements and prudential norms.

View the full story in Gulf News.