A recent press report said that Indian Overseas Bank has decided to increase the repayment period for borrowers in the retail sector. The bank’s decision has been announced following directions from the Union Ministry of Finance to help borrowers in retail and MSME (micro, small and medium enterprises) segments to tide over the problem of rising interest rates.
Mr. M. Narendra, Chairman and Managing Director of the bank, told the press that the board of directors have decided to increase the repayment period for retail and MSME borrowers. The retail loan portfolio of the bank includes Clean Loan, Consumption Loans-Sahayika, Educational Loans-VidyaJyoti, Vehicle Loans- Phushpaka, Commercial cash Credit against Jewellery etc. He also said that the bank would be able to achieve credit growth of 22 per cent against the industry projection of 18 per cent this fiscal.
Reports said that the bank has planned to open 55 per cent of its branches in rural and semi-urban areas during the current financial year. It has also planned to open 400 branches, of which 186 will be set up exclusively in un-banked and under-banked areas having a population of less than 10,000.
Mr. M. Narendra said that the total number branches will then go up to 2,600. The bank has 2,208 branches as of August 31.