Now IOB Is Looking For Alliances

To leverage its record for loan syndication and technology, Chennai-based Indian Overseas Bank (IOB) is thinking about a coalition with other banking institutions.

SA Bhat, chairman and managing director, said, “I have approached some banks but it is still in the formation stage. We are looking at banks with a business size of Rs 50,000-1,00,000 crore with reach in states like Gujarat and Maharashtra where we don't have that many branches.”

Bhat told that IOB is in search of banks that can balance its business operations just like in the case of other such alliances including OBC, Indian Bank and Corporation Bank.

"We will look at using our technology to monitor customers and movement of people," he said, adding that the bank was open to even foreign banks for this affiliation.

Earlier, while addressing at the Ficci-IBA conference on banking, Bhat stated, “PSU banks are fairly threatened by foreign and private banks because of their innovations in technology.”

“Despite we being present in every nook and corner of the country, we feel threatened by them because of their cheap use of technology. PSU banks will also have to learn to use technology through solutions like core banking,” he said.