Date:15/09/2007 URL: http://www.thehindubusinessline.com/2007/09/15/stories/2007091551330600.htm

Back IOB in talks for tie-up with another bank

Our Bureau

Mumbai, Sept. 14 Chennai-based Indian Overseas Bank is looking for a tie-up with another bank to expand its business and reach. Without naming the likely partner, Mr S. A. Bhat, Chairman and Managing Director, IOB, said, “Talks are at a very formative stage. We will tie up with a bank that will complement us in terms of business and geographies.”

Speaking to reporters at a seminar on banking, Mr Bhat said that the agreement would be on the lines of the alliance between three public sector banks - Oriental Bank of Commerce, Indian Bank and Corporation Bank, which was signed last year.

In terms of business, IOB would look for a partner strong in areas such as technology and loan syndication. “These are areas I cannot singularly manage. In loan syndication, huge amounts are in question,” Mr Bhat said.

In terms of geographical reach, the bank would look for a partner with strong presence in states such as Maharashtra, Gujarat, Uttar Pradesh and Madhya Pradesh, as it is reasonably well placed in the north-east and in the south.

Going ahead, Mr Bhat did not rule out the possibility of IOB acquiring another bank.

“It cannot be a foreign bank as they are too huge. It would have to be either a public sector bank or a private bank,” Mr Bhat said.