Indian Overseas Bank (IOB) has planned a major global expansion initiative. The government-owned bank, with its head office in this city, has identified 14 centres in the US, Australia and African countries to establish its presence, according to company officials.
“This is a medium and long-term expansion plan for us,” said M Narendra, chairman and managing director.
A preliminary feasibility survey has been conducted by global consulting firm Deloitte & Touche and the report is with the bank. IOB is to conduct its own survey before further procedures, including approaching the Reserve Bank of India (RBI) for approval. The project would be implemented in three phases. First is ‘Wave 1’ for which the survey has been conducted and would be taken for implementation immediately. Wave 2 is for the medium term, to be done over 12-18 months. Wave 3 would be considered after three years, said a senior official.
Wave 1 includes setting up of around six branches — two in the US, one in Australia, one in New Zealand and two in Africa. It expects to be ready for implementation in a year. The places were selected on the economic conditions and the prospect these give the bank for future growth. IOB is looking at serving the numerous ethnic Indian population in these countries through new branches.
It also has to consider the local laws, to decide if a branch should begin as a representative office and operate for some years before necoming a full-fledged one. “For instance, in some countries, we have to operate a few years as a representative office before applying for launch of a branch,” said the official.
IOB is also awaiting the RBI’s nod to upgrade its offices in China, Vietnam and Dubai to branches. It currently has six branches abroad, two in China (Hong Kong) and one each in Singapore, Sri Lanka (Colombo), South Korea (Seoul) and Thailand (Bangkok).
Meanwhile, the Indian International Bank (Malaysia), a joint venture between Bank of Baroda, IOB and Andhra Bank, is expected to be ready for operation in the next two months. According to reports, Bank of Baroda holds 40 per cent, IOB another 35 per cent and Andhra Bank the rest.