Indian Overseas Bank Vizag eyes Rs 200 crore deposits

Indian Overseas Bank (IOB) of the Visakhapatnam region, which has branches in five coastal districts from Srikakulam to West Godavari, is targeting Rs 200 crore deposits during this fiscal. IOB has 33 branches and six extension counters in the region.

"During the last fiscal, we mobilised about Rs 104 crore new deposits. This year, we are aiming at Rs 200 crore deposits," M N Krishnan, chief regional manager, IOB, Vizag region, told mediapersons here.

The bank has planned a fortnight-long deposit mobilisation 'mahotsav' from July 1 to achieve the target.

This year, the bank is giving more thrust to retail deposits rather than institutional deposits. "We want to increase our low-cost deposits from 28 per cent to 31 per cent by the end of this fiscal."

The bank offers an interest of 7.25 per cent on retail deposits ranging between Rs 10,000 and Rs 25 lakh for 1-3 year term and 7.5 per cent for above three years. For deposits by senior citizens, the rate of interest is one per cent extra, according to him.

The bank has also introduced a trader-friendly 'easy finance scheme', under which credit up to Rs 25 lakh is provided based on the turnover reported in sales tax assessment order without such requirements like financial statements. The bank is targeting to disburse Rs 25 crore under this scheme during this fiscal in the region.

Krishnan said that for the current fiscal, the bank had earmarked Rs 160 crore for advances to different sectors in the region. Of this, 60-70 per cent would be disbursed to the agricultural sector alone.