Indian Overseas Bank
Encyclopedia
Indian Overseas Bank is a major bank based in Chennai
Chennai
Chennai , formerly known as Madras or Madarasapatinam , is the capital city of the Indian state of Tamil Nadu, located on the Coromandel Coast off the Bay of Bengal. Chennai is the fourth most populous metropolitan area and the sixth most populous city in India...

 (Madras), with 2018 domestic branches and six branches overseas. Indian Overseas Bank has an ISO certified inhouse Information Technology department, which has developed the software that 2018 branches use to provide online banking to customers; the bank has achieved 100% networking status as well as 100% CBS status of branches with a total number of 2018 CBS branchs and Extension Counters. IOB also has a network of about 1010 ATMs all over India and IOB's International VISA Debit Card is accepted at all ATMs belonging to the Cash Tree and NFS networks. IOB offers internet Banking (E-See Banking) and is one of the banks that the Govt. of India has approved for online payment of taxes.The bank's business more than doubled in the last four years. According to "A profile of banks (2009-10)" published by RBI, the bank's deposits increased from Rs.50529 crore as on 31.03.06 to Rs.110795 crore as on 31.03.10 and advances from Rs.34756 crore to Rs.79004 crore.

History

  • 1937: Shri.M. Ct. M. Chidambaram Chettyar
    M. Ct. M. Chidambaram Chettyar
    Muttaiya Chidambaram Chettiar Muthiah Chidambaram Chettiar was an Indian industrialist and banker who founded the Indian Overseas Bank. He was the great-grandson of Muttaiya Chettiar, the patriarch of the M. Ct. and S. Rm families...

     establishes the Indian Overseas Bank (IOB) to encourage overseas banking and foreign exchange operations. IOB started up simultaneously at three branches, one each in Karaikudi
    Karaikudi
    Karaikudi is a town in Sivaganga District in the Indian state of Tamil Nadu.Chettinad literally 'Chetti land' in Tamil, is a collection of 76 villages/towns. Chettinad stretched from Ramnad District and Pudukottai State of 'British' India. The Chettiars, or more properly the Nattukottai...

    , Madras (Chennai
    Chennai
    Chennai , formerly known as Madras or Madarasapatinam , is the capital city of the Indian state of Tamil Nadu, located on the Coromandel Coast off the Bay of Bengal. Chennai is the fourth most populous metropolitan area and the sixth most populous city in India...

    ) and Rangoon (Yangon
    Yangon
    Yangon is a former capital of Burma and the capital of Yangon Region . Although the military government has officially relocated the capital to Naypyidaw since March 2006, Yangon, with a population of over four million, continues to be the country's largest city and the most important commercial...

    ). It then quickly opened a branch in Penang
    Penang
    Penang is a state in Malaysia and the name of its constituent island, located on the northwest coast of Peninsular Malaysia by the Strait of Malacca. It is bordered by Kedah in the north and east, and Perak in the south. Penang is the second smallest Malaysian state in area after Perlis, and the...

     and another in Singapore
    Singapore
    Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...

    . The bank served the Nattukottai Chettiar
    Nagarathar
    The Nagarathars is a Chettiar community in Shaivism that originated in Kaveripoompattinam under the Chola kingdom of India. They are a prominent mercantile Vaishya, caste in Tamil Nadu, South India...

    s, who were a mercantile class that at the time had spread from Chettinad
    Chettinad
    Chettinad is a region of the Sivaganga district of southern Tamil Nadu state, India. Karaikudi is known as the capital of Chettinad , which includes Karaikudi and 74 other villages...

     in Tamil Nadu
    Tamil Nadu
    Tamil Nadu is one of the 28 states of India. Its capital and largest city is Chennai. Tamil Nadu lies in the southernmost part of the Indian Peninsula and is bordered by the union territory of Pondicherry, and the states of Kerala, Karnataka, and Andhra Pradesh...

     state to Ceylon (Sri Lanka
    Sri Lanka
    Sri Lanka, officially the Democratic Socialist Republic of Sri Lanka is a country off the southern coast of the Indian subcontinent. Known until 1972 as Ceylon , Sri Lanka is an island surrounded by the Indian Ocean, the Gulf of Mannar and the Palk Strait, and lies in the vicinity of India and the...

    ), Burma (Myanmar
    Myanmar
    Burma , officially the Republic of the Union of Myanmar , is a country in Southeast Asia. Burma is bordered by China on the northeast, Laos on the east, Thailand on the southeast, Bangladesh on the west, India on the northwest, the Bay of Bengal to the southwest, and the Andaman Sea on the south....

    ), Malaya
    British Malaya
    British Malaya loosely described a set of states on the Malay Peninsula and the Island of Singapore that were brought under British control between the 18th and the 20th centuries...

    , Singapore
    Singapore
    Singapore , officially the Republic of Singapore, is a Southeast Asian city-state off the southern tip of the Malay Peninsula, north of the equator. An island country made up of 63 islands, it is separated from Malaysia by the Straits of Johor to its north and from Indonesia's Riau Islands by the...

    , Java, Sumatra
    Sumatra
    Sumatra is an island in western Indonesia, westernmost of the Sunda Islands. It is the largest island entirely in Indonesia , and the sixth largest island in the world at 473,481 km2 with a population of 50,365,538...

    , and Saigon. As a result, from the beginning IOB specialized in foreign exchange and overseas banking (see below).
  • 1960s: The banking sector in India was consolidating by the merger of weak private sector banks with the stronger ones; IOB absorbed five banks, including Kulitali Bank (est. 1933).
  • 1969: The Government of India nationalized IOB. At one point, probably before nationalization, IOB had twenty of its eighty branches located overseas. After nationalization it, like all the nationalized banks, turned inward, emphasizing the opening of branches in rural India.
  • 1988-89: IOB acquired Bank of Tamil Nadu in a rescue.
  • 2000: IOB engaged in an initial public offering
    Initial public offering
    An initial public offering or stock market launch, is the first sale of stock by a private company to the public. It can be used by either small or large companies to raise expansion capital and become publicly traded enterprises...

     (IPO) that brought the government's share in the bank's equity down to 75%.
  • 2009: IOB took over Shree Suvarna Sahakari Bank, which was founded in 1969 and had its head office in Pune
    Pune
    Pune , is the eighth largest metropolis in India, the second largest in the state of Maharashtra after Mumbai, and the largest city in the Western Ghats. Once the centre of power of the Maratha Empire, it is situated 560 metres above sea level on the Deccan plateau at the confluence of the Mula ...

    . In 2001 it had acquired the Mumbai-based Adarsha Janata Sahakari Bank, which gave it a branch in Mumbai. Shree Suvarna Sahakari Bank has been in administration since 2006. It has nine branches in Pune, two in Mumbai and one in Shirpur
    Shirpur
    Shirpur is a city and taluka in Dhule district of Nashik Division, Maharashtra. It is located on National Highway 3, which runs from Agra in Uttar Pradesh to Mumbai, Maharashtra. The Arunawati river flows through the city. Shirpur is just 50 kilometers away from the city of Dhule...

    . The total employee strength is estimated to be little over 100.

International expansion

  • 1937-38: As mentioned above, IOB was international from its inception with branches in Rangoon, Penang, and Singapore.
  • 1941: IOB opened a branch in Malaya that presumably closed almost immediately because of the war.
  • 1946: IOB opened a branch in Ceylon.
  • 1947: IOB opened a branch in Bangkok and re-opened others.
  • 1948: United Commercial Bank (see below) opened a branch in Malaya.
  • 1949: IOB opened a branch in Bangkok
    Bangkok
    Bangkok is the capital and largest urban area city in Thailand. It is known in Thai as Krung Thep Maha Nakhon or simply Krung Thep , meaning "city of angels." The full name of Bangkok is Krung Thep Mahanakhon Amon Rattanakosin Mahintharayutthaya Mahadilok Phop Noppharat Ratchathani Burirom...

    .
  • 1963: The Burmese government nationalized IOB’s branch in Rangoon.
  • 1973: IOB, Indian Bank
    Indian Bank
    Indian Bank is a major Indian Commercial Bank headquartered in Chennai , India. It has 22,000 employees, 1923 branches and is one of the big public sector banks of India. It has overseas branches in Colombo, Sri Lanka, Singapore, and 229 correspondent banks in 69 countries...

     and United Commercial Bank established United Asian Bank Berhad in Malaysia. (Indian Bank had been operating in Malaysia since 1941 and United Commercial Bank Limited had been operating there since 1948.) The banks set up United Asian to comply with the Banking Law in Malaysia, which prohibited foreign government banks from operating in the country. Also, IOB and six Indian private banks established Bharat Overseas Bank
    Bharat Overseas Bank
    Bharat Overseas Bank was a private bank based in Chennai, India. In 2007 it merged with Indian Overseas Bank, which took over all the bank's employees, assets, and deposits....

     as a Chennai-based private bank to take over IOB's Bangkok branch.
  • 1977: IOB opened a branch in Seoul.
  • 1979: IOB opened a Foreign Currency Banking Unit in Colombo
    Colombo
    Colombo is the largest city of Sri Lanka. It is located on the west coast of the island and adjacent to Sri Jayawardenapura Kotte, the capital of Sri Lanka. Colombo is often referred to as the capital of the country, since Sri Jayawardenapura Kotte is a satellite city of Colombo...

    , Sri Lanka
    Sri Lanka
    Sri Lanka, officially the Democratic Socialist Republic of Sri Lanka is a country off the southern coast of the Indian subcontinent. Known until 1972 as Ceylon , Sri Lanka is an island surrounded by the Indian Ocean, the Gulf of Mannar and the Palk Strait, and lies in the vicinity of India and the...

    .
  • 1992: Bank of Commerce (BOC
    CIMB
    CIMB Group CIMB Group is a regional universal bank operating in high growth economies in ASEAN. CIMB Group has the widest retail branch network across the region and is an indigenous ASEAN investment bank....

    ), a Malaysian bank, acquired United Asian Bank (UAB).
  • 2007: IOB took over harat Overseas Bank]
  • 2009: IOB took over assets and liabilities of Shree Suvarna Sahakari Bank.
  • 2010: Malaysia awarded a commercial banking license to a locally incorporated bank to be jointly owned by Bank of Baroda
    Bank of Baroda
    Bank of Baroda is the third largest bank in India, after the State Bank of India and the Punjab National Bank and ahead of ICICI Bank. BoB is ranked 763 in Forbes Global 2000 list. BoB has total assets in excess of Rs. 3.58 lakh crores, or Rs. 3,583 billion, a network of over 3,409 branches and...

    , Indian Overseas Bank and Andhra Bank
    Andhra Bank
    Andhra Bank was registered on 20 November 1923 and commenced business on 28 November 1923 with a paid up capital of Rs 1.00 lakh and an authorised capital of Rs 10.00 lakhs. The Bank crossed many milestones and the Bank's Total Business as on 30.06.2008 stood at Rs.83,256 Crores with a Clientele...

    . The new bank, India International Bank (Malaysia), will reside in Kuala Lumpur, which has a large population of Indians. Andhra Bank will hold a 25% stake in the joint-venture, Bank of Baroda will own 40% and IOB the remaining 35%.

External links

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