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Indian Overseas Bank

BSE: 532388 | NSE: IOB ISIN: INE565A01014
Market Cap: [Rs.Cr.] 5,567.32 Face Value: [Rs.] 10
Industry: Banks - Public Sector

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Management Discussions

Economic Environment & Banking Environment

The economy is expected to report a growth of 4.9% in 2013-14 compared to 4.5% in theprevious fiscal. Though the price inflation was not comfortable, the Fiscal deficit wascontained around 4.6% of GDP. Forex reserves stood at US $ 295 billion during Feb 2014.However, the retail inflation in March 2013 increased to 8.31% where as the inflationmeasured in terms of WPI stood at 5.7%. As per CRISIL forecast, the GDP may grow higher at6% in the current fiscal 2014-15. Although there is a modest recovery in the economy,savings rate is yet to pickup as inflationary trends are not easing favorably. The UScentral bank earlier said that it would reduce its monthly US $ 85 billion bond-buyingprogram by US $ 10 billion a month starting January 2014. But the Fed promised to keep thelow-interest-rate regime longer than the markets anticipation. Now, the country is betterprepared to deal with the situation arising out of the tapering of US bond-purchaseprogram. The country raised about US $ 34 billion between September and November when thecentral bank opened a special concessional dollar-swap window to attract FCNR (B)deposits, adding to India’s forex reserves. FIIs have also pumped in a little over Rs45,000 crore since September. Foreign exchange reserves, which had dropped to a three-yearlow in early September 2013, edged to an eight-month high of US $ 295.7 billion. There wasa turnaround in exports and decline in gold imports narrowing current account deficit(CAD) to US $ 5.2 billion. RBI handled the situation carefully and as a matter of factthat the tapering news have not collapsed all emerging market currencies.

In the Banking sector, aggregate deposits of SCB’s are earlier projected to growby 14% and credit by 15%. As of fortnightly ending 21st March 2014, The System recorded14.63% Y-o-Y growth in deposits and 14.26% in the advances. The following were the keychanges in the policy rates during the year 2013-14.

1. Repo rate increased to 8% as of now from 7.25% in May 2013, 7.50% in Sept 2013 &7.75% in Oct 2013.

2. MSF rate presently at 9%, however reduced from 10.25% in July 2013, 9.50% in Sept2013 & 8.75% in Oct 2013.

3. CRR and SLR are maintained at the same level of 4% and 23% respectively for thewhole year.

4. The average Base Rate is between 10-10.25% against the last year level of9.75%-10.50%.

5. Term Deposits of more than 1 year moderated to 8 % - 9.10% at present from the lastyear level of 8.50% - 9.25%.

6. Call Rates is hovering around 8% since Aug 2013. Some of the other measures includeswap facility on US dollar – Rupee, Reviewing the limits on ECB, encouraging overseasDirect Investments, De regulation of Interest rates on NRI deposits, raising overseasborrowing limits of Banks from 50% of unimpaired Tier I capital to 100% with an objectiveto create more room for banks to raise overseas funds, Increasing the import duty on gold,changes in the FDI policy, extension of interest subvention scheme, Broadening theinfrastructure schemes, Steps to contain the rupee depreciation etc.

As per Fitch rating agency report, the stress loans of domestic banks includingrestructured debt may continue to rise to reach 15% by end of 2014-15 from over 10% in2013-14 which causes concern as far as the profitability of the banks is concerned.

Bank’s Operations. Domestic Deposits

The Bank’s total domestic deposits increased from Rs. 1,95,457 crores in Mar 2013to Rs. 2,19,731 crores as of Mar 2014 with a growth of 12.42%. The Bank’s domesticCASA deposits increased to Rs. 56,884 crores with a moderate growth of 7.94% resulting inCASA ratio of 25.89%. The Bank has opened around 38 lacs CASA accounts for the year as awhole. This enabled the Bank to maintain the market share of 2.73% as on 21st March 2014on a year on year fortnightly basis.

Domestic Advances

The Domestic gross Advances improved to Rs. 1,61,998 crores as of March 2014 with agrowth of 11.80% as compared to Rs. 1,44,894 crores in March 2013. The domestic CD Ratiowas maintained at 73.73% by March 2014 compared to 74.13% in the previous year. The Bankwas comfortable with the market share of 2.59%.

Overseas Performance

During August 2013, Bank upgraded its Extension counter in Sri Lanka into a branch,with due regulatory approvals taking the number of branches in Sri Lanka to two. FCBU atColombo has commenced operations from January 2014. Bank is in the process of establishingthe office at Sukhumvit, Thailand and is expected to commence operations before August2014. As at the end of March 2014, the Bank had 13 establishments abroad, including 7overseas branches, 3 Representative offices, 2 Remittance Centres and 1 Joint VentureSubsidiary. There are two branches each at Hongkong and at Sri Lanka and one each atSingapore, South Korea and Bangkok.

Forex Operations Turnover

The total merchant turnover for 2013-14 including AD branches is Rs. 1,30,319 crores asagainst Rs. 1,10,553 crores in last year recording a growth of 17.88%. This includes theprecious metal business of the Bank for 2013-14 to the tune of Rs. 1,470 crores (5,768kgs) as against Rs. 2,538 Crores (8,751 kgs) in the previous year.

Profit on Exchange

The Bank has achieved a total Profit on Exchange at Rs. 221 crores for 2013-14 and Rs.8 crores from the Precious metal business domestically.


The Bank’s MSME advances increased to Rs. 28,978 crores as of March 2014. Theshare of MSME credit on gross domestic credit increased from 16.02% in 2012-13 to 17.56%in 2013-14. This includes advances to Micro and Small Enterprises (MSE) to the tune of Rs.24,575 crores. Priority sector credit under MSME sector as on 31st March 2014 stood at Rs.23,488 crores. The Bank increased advances to MSE sector by 23.02 % surpassing themandatory requirement of 20%. Credit to Micro sector alone surpassed Rs. 10,000 croresduring the year reflecting a growth of 27.16%. The Bank financed 1,39,894 new micro sectoraccounts during the year. The number of Micro sector accounts increased by 43.94% duringthe year, as against the mandatory requirement of 10%. During the year, 16,365 new loanaccounts aggregating to Rs. 879 crores were covered under the Credit Guarantee Scheme ofCGTMSE.

The Bank introduced IOB SME Debit Cards with unique features for the benefit of SMEborrowers. The Bank launched IOB SME Contractor Scheme, exclusively for contractors withcredit limits up to Rs. 5 crores. IOB SME ADD ON scheme was introduced to enable theexisting MSME borrowers to get their additional term loan requirement up to Rs. 25 lacs atthe branch level itself, thereby making the credit available without delay. IOB MICRO ONEscheme launched earlier has been quite successful with nearly 2150 new Micro sectorborrowers were financed under the scheme. IOB SME Kanaka Scheme, which was earlier aregional specific scheme, was extended to all regions during the year. The Bank alsoextended concessional credit terms for purchase of new Ambassador Cars and Swift- Dezirecars under Taxis Replacement Scheme by Government of West Bengal. The Bank entered into anMOU with Bharatiya Yuva Shakthi Trust (BYST), Chamber of Indian Micro Small and MediumEnterprises (CIMSME) and Women Entrepreneurs Welfare Association-Tamil Nadu (WEWA) forcredit facilitation. The Bank entered in to MoU with Naturals, for financing thefranchisees of their Spa Saloons under the SIDBI Loan Facilitation Service (LFS). Bankexpects to utilize these arrangements in the best manner to boost credit to MSME sector.

Retail Banking and Marketing

Retail Loans including Housing Loans, Educational Loans, etc., as major segmentsimproved by 21.61% during the year. Bank surpassed the target set under Pushpaka Vehicleloans with 109.93% achievement.

The income earned under Non Life category, which was at Rs. 771 lacs during 2012- 2013,is at Rs 846 lacs for the current year 2013-14 registering a YoY Growth 9.71%. The incomeearned under Life Insurance Business, which was at Rs. 754 lacs during 2012- 2013, is atRs 788 lacs for the current year 2013-14 with a YoY growth 4.56%. The income earnedthrough IOB Health Care Plus, which was at Rs. 274 lacs during 2012- 2013, is at Rs. 319lacs for the current year 2013-14 with YoY Growth 16.13%. The Bank introduced an exclusiveSavings Bank account, SB Little Star for the kids from Day one to 18 years of age. Toattract the kids further, a Piggy Bank has been offered for the accounts opened with abalance of Rs. 10,000/- . The product elicited good response from the customers.

Mid Corporate

Mid Corporate Group takes care of the lending requirements of borrowers other thanAgriculture/MSME borrowers. Borrowers enjoying credit limits of above Rs. 40 crores andupto Rs. 100 crores are taken care by Mid Corporate Group Vertical at Central office. TheBank has 16 Specialized Mid Corporate branches which are fully operational all over India(Ahmedabad, Bangalore, Baroda, Chennai, Chandigarh, Coimbatore, Delhi, Faridabad,Hyderabad, Indore, Kolkata, Ludhiana, Madurai, Mumbai, Pune and Vijayawada). Mid Corporatebranches send the credit proposals directly to Central Office for speedy disposal. Thesebranches possess necessary expertise in credit appraisal for quicker delivery of creditand have contributed Rs. 5,370 crores of Fund Based exposure and Rs. 978 crores of NonFund based exposure as on 31st March 2014. Total Bank exposure under Mid Corporate segmentas on 31st March 2014 include Fund Based exposure of Rs. 9,472 crores and Non Fund basedexposure of Rs. 2,236 crores. During the year, Mid Corporate group has sanctioned 265proposals from all over India with total sanctioned limit of Rs. 12,387 crores.

Large Corporate

Large Corporate Group is yet another vertical in Credit front taking care of Creditrequirement of borrowers other than Agriculture borrowers whose Credit requirement isabove Rs. 100 Crores. Under this vertical, Bank has a fund based exposure of Rs. 46,095Crores and Non Fund Exposure of Rs. 17,598 crores for the year ended 31st March 2014.During the year, LCG has sanctioned 145 proposals with Fresh and Enhanced credit limits ofRs. 26,242 crores received from Corporate Clients all over India.

To promote focused attention on Large Corporate accounts, the Bank is operatingSpecialized Large Corporate branches at 7 places all over India (Ahmedabad, Bangalore,Coimbatore, Delhi, Hyderabad, Kolkata and Mumbai). These Specialized Large CorporateBranches have exposure of Rs. 12,308 crores as on 31st March 2014. Apart from the above,15 existing branches in Metropolitan Centres are identified as Large Corporate Branches.

These Specialized branches are focusing in lending to borrowers coming under LargeCorporate segment, making available necessary expertise in Credit Appraisal and quickdelivery of credit. These branches are sending the credit proposals directly to CentralOffice for expedite disposal.

Priority Sector Credit

Gross Credit under Priority Sector increased to Rs. 58,090 crores at the end of March2014, registering a growth of 18%. With the achievement of Priority Sector Advances toAdjusted Net Bank Credit(ANBC) Ratio at 40.03%, Bank has further plans to continue andsurpass the National Goal of 40% in the coming years also.


During the year, the Agricultural credit registered an incremental growth of Rs. 2,861crores from Rs. 23,393 crores as of March 2013 to Rs. 26,254 crores as of March 2014. TheBank’s ratio of agricultural advances to Adjusted Net Bank Credit was 18.10% asagainst the required norm of 18%. The Bank disbursed Rs. 35,492 crores under SpecialAgriculture Credit Plan (SACP) as against the target of Rs. 33,594 crores during the year.

The Bank has granted loans to Weaker Section of the society and the outstanding as atthe end of March 2014 was Rs. 21,968 crores which is 15.14% of the ANBC as against thetarget of 10%. The loans outstanding to SC/ST under priority as at the end of March 2014were Rs. 6,802 crores which is 11.68 % of Total Priority Sector loans. The loansoutstanding to Minority community as at the end of March 2014 were Rs. 8,822 crores whichis 15.18% against the target of 15.00%.


During the year, the Bank credit-linked 47,470 Self Help Groups (SHGs) with a creditoutlay of Rs. 846 crores. The cumulative number of SHGs credit linked by the Bank is5,22,642 with a total disbursement of Rs. 5,792 crores as of March 2014. SHG CreditLinkage Week was observed in February and March 2014 coinciding with Founder’s Day on10th February, 2014 and International Women’s Day on 8th March, 2014 to give furtherthrust to SHG linkage under the direct segment.

Credit flow to Women

Bank’s credit flow to women stood at 22,365 crores as of March 31, 2014constituting 15.41 % of the Bank’s Adjusted Net Bank Credit, as against the norm of5%.

New Product Introduction:

A new credit scheme for granting agricultural term loans for investment credit andallied activities against security of gold ornaments was introduced by the Bank on 11thSeptember 2013.

Lead Bank Scheme

The Bank has Lead Bank responsibility in 13 districts in Tamil Nadu and one district inKerala. The Bank is also the Convenor of State Level Bankers’ Committee of Tamil Nadu(SLBC). During the year of review, as Convenor of SLBC, Tamil Nadu, the Bank has conductedfour meetings of the SLBC. In addition, the Bank as convenor of SLBC, Tamil Nadu convenedthe many special meetings during the year namely 1) Meeting of working group on payment ofMGNREGS wages through Banks in Tamil Nadu, 2) TAHDCO scheme loans, 3) Financial Inclusion& Direct Benefit Transfer System, 4) Educational Loan Scheme of NBCFDC implementedthrough Tamil Nadu Backward Classes Economic Development Corporation (TABCEDCO), 5)Development of Micro and Small Enterprises in Tamil Nadu, 6) Subcommittee on Tamil NaduGovernment’s Scheme for Poultry Development-Modifications to the TripartiteAgreement, 7) Meeting on various loan schemes of TAHDCO, 8) Meeting to review progress ofPMEGP/UYEGP schemes, 9) Meeting to discuss Equity Grant & Credit Guarantee Fund Schemeto Farmer Producer Companies, 10) Meeting to discuss issues relating to various loanschemes to Scheduled Caste Beneficiaries, 11) Sub Committee meeting to discussstudy/survey on the functioning of Business Correspondents and 12) Meeting on monitoringbank accounts of village panchayaths.

Initiatives for Financial Inclusion in the State: As Convenor of SLBC, Tamil Nadu.

SLBC identified 4,445 unbanked villages in Tamil Nadu with a population of 2,000 andabove and allotted to various banks. All the 4,445 villages have been provided withbanking facilities under Financial Inclusion well ahead of the timeline given by MOF(March2012).

SLBC identified 7,816 villages with population of below 2,000 and allotted to variousbanks. Banks have provided banking facilities under Financial Inclusion to all the 7,816villages. SLBC facilitated establishment of Rural Self Employment Training Institutes inall the 31 districts by the 4 Lead Banks. SLBC facilitated establishment of FinancialLiteracy & Credit counseling centers in all the 32 districts including Chennai. SLBC,Tamilnadu has achieved 100% in all the above initiatives.

SLBC initiatives on Credit Flow in Tamil Nadu

Tamil Nadu achieved a CD ratio of 120.28% as of December 2013 and stands one among thevery few states who achieved this feat. Tamil Nadu achieved 101% achievement of targetunder Annual Credit Plan (ACP) as of December 2013 which is achieved by only a very fewstates. Tamil Nadu achieved 42.64% under Priority Sector as of December 2013 against thenational norm of 40%. Tamil Nadu achieved 18.90% of Agricultural Advances as of December2013 against the national norm of 18%. Tamil Nadu achieved 12.09% of advances to weakersections as of December 2013 against the national norm of 10%. SLBC, Tamil Nadu hasachieved 100% in all the above initiatives.

SLBC initiatives on Electronic Benefit Transfer in Tamil Nadu

7.19 lakh beneficiaries are being paid pension through Smart Cards operated by BusinessCorrespondents engaged by banks in 6,105 villages in the State under Tamil Nadu GovernmentOld Age Pension Scheme by December, 2013.

1.91 lakh fishermen are paid lean period assistance of Rs. 4,000/- through bank creditin the State.

Around 8 lakh pregnant women are being paid grant of Rs. 12,000/- under Dr.Muthulakshmi maternity benefit scheme through bank credit.

Nearly 33 lakh workers of MGNREGS are paid wages in 18 districts of Tamil Nadu throughbanks through Business Correspondents.

Regional Rural Banks

Bank has sponsored two Regional Rural Banks viz., Pandyan Grama Bank in Tamil Nadu andOdisha Gramya Bank in Odisha. Pandyan Grama Bank has been earning Net Profit after Taxcontinuously since 1997-1998 and its net NPA continues to be NIL for the past 11 years.Both the RRBs have recorded Net Profit during the year. All the branches of both the RRBsare CBS compliant and NEFT facility has been provided to both RRBs.

Financial Inclusion

Covering Villages with Banking Outlets: The Bank has covered 3,726 allottedvillages with various population categories under Financial Inclusion. Of which, 3,667villages are covered under Smart Card Banking and 59 villages under Brick & MortarBranch across the country. Apart from this, Bank has covered 154 other villages also.Smart Card Banking is now being implemented in 3,838 villages spread over 21 States and 2Union Territories covering 56 Regions by engaging 2,456 Business Correspondents. Duringthe year under review, the Bank has opened 21,94,854 Basic Savings Bank Deposit Accountstaking the total number of such accounts to 59,21,110. So far, Bank has issued 11,05,215smart cards and the number of transactions undertaken in the smart card terminal is1,28,66,639.

Special Financial Inclusion Branches: In order to strengthen the FinancialInclusion efforts and ensure close supervision of the Business Correspondents (BCs), Bankhas opened 3 Special Financial Inclusion Branches in the State of Tamil Nadu. The conceptis that BCs operating in a particular area assigned to a few Branches are clustered (8-10BCs) and assisted to operate under this special arrangement which will overcome theproblems encountered by the BCs in getting their basic requirements viz., cashrequirement, passbook printing, account opening, sanction of loans, customer grievances,application forms, cash, paper rolls for HHDs etc.

Setting up Ultra Small Branch (USB): As per the guidelines of Ministry ofFinance, the Bank has set up Ultra Small Branches in 1,278 Financial Inclusion villages.Of which 7 USBs has been upgraded to full fledged branches.

Rural Self Employment Training Institutes (RSETIs)

In line with the guidelines issued by Ministry of Rural development, Govt of India, theBank had set up RSETIs at all Lead Districts to provide training to farmers, members ofSHGs, beneficiaries under SGSY, Educated unemployed youths, artisans and beneficiariesbelonging to weaker sections. In addition to the above, the Bank has set up one RSETI inthe Nilgiris District for the benefit of the tribals. During the year under review,through these RSETIs, the Bank had conducted 673 training programmes benefiting 17,217persons. A Rural Training Centre was set up by the Bank (jointly with NABARD and IndianBank) at Karaikudi (Sivaganga Dist, Tamil Nadu).

Financial Literacy Centre (FLC) viz., SNEHA:

During the period under review the Bank has set up 7 FLCs at Kerala. FLC is named asSNEHA and the Bank has set up 22 FLCs as of now. These centres educate the people in ruraland urban areas with regard to various financial products and services available fromformal financial sector, provide face to face financial counseling services and offer debtcounseling to indebted individuals. FLCs enable the user public to make informed choicesregarding financial services/ products to derive the maximum benefits.

Corporate Social Responsibility

IOB-Sampoorna Project – A Total Village Development Project

IOB Sampoorna is an innovative rural development project aimed at Total VillageDevelopment. IOB-Sampoorna is a unique Project encompassing several livelihood initiativesin the villages to ensure all-inclusive growth of rural population. It comprises of creditand non-credit components such as Financial Inclusion, I.T. Enabled banking operationswith Bio-metric Smart Cards under Business Correspondent model, Tree Planting and SocialForestry, Cleaning Water Bodies, Health Care, Skill Training for youth in computer, RuralBusiness Process Outsourcing, Promotion of non-conventional energy and Rural Tourism.

Educating Tribals

During the year 2013-14, the Bank has sponsored 98 Ekal Vidyalaya School in associationwith M/s Friends of Tribals Society, an NGO to attack illiteracy at the grass root levelthrough a unique concept viz. "One teacher School" or Ekal Vidyalaya. The Bankin association with Max Academy implemented the project on uplifting educational standardsof the under privileged children in 5 villages during the year 2013-14.

Sakthi - Indian Overseas Bank Chidambaram Chettyar Memorial Trust

The Trust, set up jointly by the Management of the Bank, Indian Overseas Bank OfficersAssociation and All India Overseas Bank Employees Union to perpetuate the memory ofBank’s Founder Shri M. Ct. M. Chidambaram Chettyar, continued to provideEntrepreneurial Development Training to women, thereby empowering them socially andfinancially to meet the challenges. During 2013-14, 9 Skill Development Programmes wereconducted in various Regions under aegis of Sakthi - IOB Chidambaram Chettyar MemorialTrust, 245 women have been trained. The Trust has so far conducted 71 EntrepreneurshipDevelopment Programmes (EDP) and skill based training programmes exclusively for women atvarious centres, benefitting 3,576 women.


Gross domestic investments as of 31st March 2014 stood at Rs 68,006 crores as againstRs. 60,195 crores as on 31st March 2013 registering a growth of 12.97% over the previousyear. The investments in SLR segment registered a growth of Rs 5,011 crores or 9.22%during the year while Non-SLR investments increased by Rs. 2,800 crores or 47.68%. Duringthe year 2013-14, securities for Rs 5,349 crores were transferred from Available for Salecategory (AFS) to Held to Maturity (HTM) segment, and Rs. 5,786 crores from Held toMaturity (HTM) to Available for Sale (AFS).

As on 31st March 2014, the extent of SLR securities held in HTM stood at 21.69% of DTLagainst the limit of 24.50% prescribed by RBI compared to 22.92% as on 31st March 2013.

The bond market experienced extreme volatility during the year, due to a host ofexternal and internal factors which saw the yields move upto 8.80% at the close of theyear after opening at 7.95%. The turnover (book value) in the secondary market was Rs71,919 crores during the year 2013-14 as against Rs 97,132 crores in 2012-13. Total profiton sale of securities amounted to Rs. 489 crores during the year 2013-14 as against Rs 307crores of 2012-13. The return on total investments before amortization for the year is7.60% as against 7.53% in 2012-13.

Rupee Derivatives

During the year 2013-14, Bank has traded in Rupee interest swaps and had not enteredinto any fresh hedging swaps. Due to maturity, the outstanding in interest rate swaps hascome down to Rs. 823 crores as on 31st March 2014 as against Rs. 998 crores as on 31stMarch 2013.

Merchant Banking Activities

ASBA (Banker to Issue activity): All general banking branches in India have been madeASBA enabled branches to accept ASBA applications for IPO, FPO and Rights Issues asrequired by SEBI. During the year 2013-14, Bank introduced e-ASBA for lodging ASBAapplications online by customers using net banking facility, whereby not only their ASBAapplications are lodged but also their bank accounts are blocked by themselves uponsubmission. The Bank is also acting as a Syndicate ASBA bank to accept IPO/FPO/Rightsapplications from Brokers.

Other activities under Merchant Banking: The Bank continues to act as Merchant Bankerfor issues, Debenture Trustee, Collecting Bankers to Non ASBA Applications, Paying Bankerfor Dividend/Interest Warrants etc.

Depository Operations: The Bank is a Depository Participant (DP) of NSDL and isextending depository related services through 56 service centre branches. In order toimprove the number of demat accounts, the Bank became a DP of CDSL during 2012-13 byoffering the service through 13 service centres.

Capital Market Services Branch

In order to cater to the financial requirements of Stock Brokers, the Bank has alreadyset up a Capital Market Services Branch at Mumbai to extend credit facilities to StockBrokers and to nominate the Bank as their Clearing and Settlement Bank for handling theirdaily Clearing Obligations of Stock Exchanges.

Customer Service

The Bank is a member in Banking Codes and Standards Board of India (BCSBI). BCSBI hasrevised various Fair Practice Codes which is elaborate covering all the areas of Banking.As per the revised codes, ‘Fair Practice Code for Lenders’ have beenincorporated. As per the survey on Customer service redered by Indian Banks by BCSBI, theBank has been assigned above average rating and is rated fourth amongst the 26 PSBs.

A web based online system called SPGRS (Standardised Public Grievance Redressal System)assisting customers to logde complaint online with status tracking facility is already inplace. The Regional offices and Branches are enabled to view the complaints in the systemand resolve the same immediately. Toll Free Teleservices for Redressal of Customer

Grievances (No.1800-425-4445) is provided on 24x7 basis for receiving the complaintsfrom the customers to resolve within 48 hours. Customers Fortnight was observed in allbranches during November 2013 and Executives from the Central Office and Regional Officeshave visited the branches and met the customers. The Bank has conducted the CustomerService Survey for the year 2013-14 to assess the level of customer service rendered bythe branches.

The details of customer complaints received and redressed during the year 2013-14 aredetailed below.

Sl.No. Details At Central Office At Regional Offices
1. No. of complaints pending at the beginning of the year 114 89
2. No. of complaints received during the year 4030 2141
3. No. of complaints redressed during the year 4050 2158
4. No. of complaints pending at the end of the year 94 72
Settlement Rate 97.73% 96.77%

Details of Complaints are analysed below :

Advances related complaints 893 14.47
ATM related complaints 1299 21.05
Customer service related complaints 879 14.24
Demat services related complaints 21 0.34
Deposit related complaints 546 8.85
General Banking complaints 1349 21.86
Complaints related to 38 0.64
Government business
Complaints related to NRI services 39 0.65
Complaints related 177 2.86
Internet banking related complaints 490 7.93
Credit card related complaints 140 2.27
Pension related complaints 300 4.84
TOTAL 6171 100.00

No. of awards passed by the Banking Ombudsman and implemented by the Bank are asfollows.

1. No. of awards pending at the beginning of the year 0
2. No. of awards passed by Banking Ombudsman during the year 0
3. No. of awards implemented during the year 0
4. No. of awards lapsed due to non acceptance by customer 0
5. No. of unimplemented awards at the end of the year 0

The Bank in the capacity as the Convener of Customer Service Centre in Chennai City hasresolved all the complaints received during the year.

Recovery Management

The Bank has 16 specialised Asset Recovery Management Branches (ARMB) to improve therecovery of NPA accounts. The services of Recovery Agents were also utilised to improverecovery. High value Slippages of Rs. 5 crores and above were reviewed by the Board ofDirectors in all the Board meetings. Top NPA accounts of Rs. 1 crore and above aremonitored from the corporate office on a regular basis and most of the borrowers arepersonally met by the General Manager (Law & Recovery). Top Management hascontinuously reviewed all high value NPA accounts individually on a regular basis withfield functionaries through video conference.

Special schemes empowering branch managers to accept One Time Settlements in smallvalue NPA accounts for all NPAs of less than Rs. 1 lac and Rs. 1 lakh to Rs. 5 lakhs wererevalidated. An amount of Rs. 362 crores has been recovered in small value NPA accountswith outstanding less than Rs. 5 lacs. Out of this, recovery in accounts with outstandingless than Rs. 1 lakh was Rs. 61 crores. One more scheme to gear up recovery in accountswith outstanding of more than Rs. 5 lakhs upto Rs. 1 crore was also introduced. Therecovery under this scheme was Rs. 59 crores. One time settlements being hassle freerecovery process, Regional Heads/Branches were advised to contact the borrowers forsubmitting OTS proposals as per the recovery policy of the Bank. Action under SARFAESI actwas initiated in all eligible accounts and properties brought for sale. FrequentLok Adalats/Recovery camps were conducted especially in respect of small

Futures & Options Quote
Expiry Date :
71    0.90 (1.28%)
Instrument: FUTSTK
Expiry Date: 31-Jul-2014
Open Price: 72
Average Price: 71.48
No. of Contracts Traded: 1,080
Open Interest: 1,34,88,000
Underlying: IOB
Market Lot: 8,000
Previous Close: 71
Day's High | Low: 72.45 | 70.50
Turnover (Cr.): 61.76
Open Int. Change: 0,18,32,000 ([11.96]% )
Key Information

Key Executives:

Alok Pande , Nominee (Govt)

Deepa Chellam , Company Secretary

Jai Deo Sharma , Director (Officer Employee)

Atul Agarwal , Executive Director

Company Head Office / Quarters:

763 Anna Salai,
Tamil Nadu-600002
Phone : Tamil Nadu-91-44-28519491/28415702/28889392 / Tamil Nadu-
Fax : Tamil Nadu-91-44-28585675 / Tamil Nadu-
E-mail : investor@iobnet.co.in / investorcomp@iobnet.co.in
Web : http://www.iob.co.in


Cameo Corporate Services Ltd
Subramanian Building,1ST Floor No 1,Club House Road,Chennai - 600002

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