||Exchange Rate ( 24/02/2017 )
|Home >> About Us >> About The Bank
|ABOUT THE BANK
- How it began
Indian Overseas Bank (IOB) was founded on February 10th 1937, by Shri.M.Ct.M.Chidambaram Chettyar, a pioneer in many
fields - Banking, Insurance and Industry with the twin objectives of specialising in foreign exchange business and
IOB had the unique distinction of commencing business on 10th February 1937 (on the inaugural day itself) in three branches
simultaneously - at Karaikudi and Chennai in India and Rangoon in Burma (presently Myanmar) followed by a branch in Penang.
At the dawn of Independence IOB had 38 branches in India and 7 branches abroad. Deposits stood at Rs.6.64 Crs and
Advances at Rs.3.23 Crs at that time.
- Pre-nationalisation era (1947- 69)
During the period, IOB expanded its domestic activities and enlarged its international banking operations. As early as in 1957,
the Bank established a training centre which has now grown into a Staff College at Chennai with 9 training centres all
over the country.
IOB was the first Bank to venture into consumer credit. It introduced the popular Personal Loan scheme during this period.
In 1964, the Bank made a beginning in computerisation in the areas of inter-branch reconciliation and provident fund accounts.
In 1968, IOB established a full-fledged department to cater exclusively to the needs of the Agriculture sector.
- At the time of Nationalisation (1969)
IOB was one of the 14 major banks that was nationalised in 1969.
On the eve of Nationalisation in 1969, IOB had 195 branches in India with aggregate deposits of Rs. 67.70 Crs. and
Advances of Rs. 44.90 Crs.
- Post - Nationalisation era (1969-1992)
In 1973, IOB had to wind up its five Malaysian branches as the Banking law in Malaysia prohibited operation of foreign
Government owned banks. This led to creation of United Asian Bank Berhad in which IOB had 16.67% of the paid up capital.
In the same year Bharat Overseas Bank Ltd was created in India with 30% equity participation from IOB to take over IOB’s
branch at Bangkok in Thailand.
In 1977, IOB opened its branch in Seoul and the Bank opened a Foreign Currency Banking Unit in the free trade zone in
Colombo in 1979.
The Bank has sponsored 3 Regional Rural Banks viz. Puri Gramya Bank, Pandyan Grama Bank, Dhenkanal Gramya Bank
The Bank setup a separate Computer Policy and Planning Department (CPPD) to implement the programme of computerisation,
to develop software packages on its own and to impart training to staff members in this field.
- Post Reform Period - Unprecedented developments (1992 & after)
IOB entered Web site during the month of February 1997.
IOB got autonomous status during 1997-98
IOB had the distinction of being the first Bank in Banking Industry to obtain ISO 9001 Certification for its Computer Policy and
Planning Department from Det Norske Veritas (DNV), Netherlands in September 1999. This Certification covers Design,
Development, Implementation and Maintenance of software developed in-house, procurement and supply of hardware
and execution of turnkey projects.
IOB started STAR services in December 1999 for speedy realisation of outstation cheques. Now the Banks has 14 STARS
centres and one Controlling Centre for providing this service.
During 1999, IOB started tapping the potential of internet by enabling ABB card holders in Delhi to pay their telephone bills
by just logging on to MTNL web site and by authorising the Bank to debit towards the telephone bills.
A Voluntary Retirement Scheme was introduced in the Bank on the lines of IBA package with Boards approval. The scheme
was offered to Officers/Employees from December 15, 2000.
The Bank made a successful debut in raising capital from the public during the financial year 2000-01, despite a subdued capital
market. The issue opened on September 25, 2000 for raising Rs.111.20 crore and was oversubscribed by 1.87 times. The issue
closed on September 29, 2000 - on the earliest closing day. The allotment was made in October 2000. Consequent to the public
issue, the share of the Government in the Bank's capital came down to 75%. The shares of the Bank have been listed on the
Madras Stock Exchange (Regional), Stock Exchange at Mumbai and the National Stock Exchange of India Ltd.
IOB bagged the NABARD's award for credit linking the highest number of Self Help Groups for 2000-2001 among the Banks
in Tamil Nadu.
IDRBT (Institute for Development and Research in Banking Technology) conferred the Best Award under Banking Technology
to IOB. The award was given for the innovative use of banking applications on INFINET (Indian Financial Network) for the
year 2001. Mobile banking under SMS technology implemented in Ahmedabad and Baroda. Pilot run of Phase I of the Internet
Banking commenced covering 34 branches in 5 Metropolitan centres. IOB was one among the first to join Reserve Bank of
India’s negotiated dealing system for security dialing online.
The Bank has finalised an e-commerce strategy and has developed the necessary internet banking modules in-house. For
the first time a Total Branch Automation package developed in-house has been customised in one of the Overseas Branches
of the Bank.
Most software developed in-house.
IOBNET connects Central Office with all Regional Office.
The Bank has paid a maiden dividend of 10% p.a for 2000-01, followed by 12% during 2001-02.