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IOB on turnaround path

IOB on turnaround path

Indian Overseas Bank (IOB) is now poised for implementation of its turnaround strategy to achieve sustainable performance improvement.

Stressed assets, additional NPA provisions as a result of regulatory requirements, poor credit growth and capital constraints were among its key challenges faced by the bank.

The bank was brought under prompt corrective action (PCA) programme by RBI from September 2015 after swelling non performing assets (NPAs). 

A comprehensive turnaround plan has been chalked out and the bank says it works.

“The bank is geared for implementation of its multipronged turnaround strategy which with its emphasise on the areas that include technology, NPA management, business growth and human resources,” said R Subramaniakumar, Managing Director & CEO of while addressing the bank’s latest annual general meeting.

There will be a special focus on driving credit growth in the retail and MSME segments in 2017-18 balanced with quality lending in large corporate and mid corporate portfolio, said Kumar.

The bank also undertook rationalisation of branches and administrative offices with a view to reducing the number of loss-incurring branches and reduce expenditure. About 100 unviable branches are likely to be closed and a couple of hundred ATMs are to be repositioned. 

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