Indian Overseas Bank Share price

Brief History and BackgroundThe Bank was founded on February 10 1937 simultaneouslysetting up domestic and overseas branches on the same day : abefitting description of the name of the Bank.Shri.M.Ct.M.Chidambaram Chettiar a pionner in industry bankingand insurance was the founder of the Bank.At the time of India's independence the Bank has 38 branches inIndia and 7 branches abroad. Deposits amounted to Rs.6.64crores and Advances Rs.3.23 crores. During the 60s IndianBanking witnessed strong wave of mergers of weak private sectorbanks with stronger institutions. IOB itself took five banksinto its fold which helped the Bank widen its reach.The Bank has been attending to the needs of small industry andagriculture long before nationalisation living upto its motto"Small enough to know you and Big enough to serve you". Personalloans were given by the Bank in the early 50s when it was noteven thought of by the banking industry. Customer service wasgiven top priority by the Bank ever since its inception. Thefact that mechanisation was inevitable to improve customerservice was recognised even in the 60s.For 32 years the Bank grew globally and by the end of 1969 ithad Rs.146 crores of business transacted through 213 branches.The bank was nationalised under the Banking Companies(Acquisition and Transfer of Undertakings) Act 1970. During theperiod of nationalisation the Bank made rapid strides in allthe major business parameters. In the 90s consolidation hasbeen receiving greater attention. Now 31 year hence the volumebusiness has grown by 245 times handled by over 1400 branches.The Bank is one among the first few banks that were accordedautonomous status in 1997.The entire capital of the Bank is currently held by theGovernment of India. The Bank has not made any issue of EquityShares/Debentures/Preference Shares by way of Public/RightsIssue through an Offer Document since date of itsnationalisation. However the Bank has raised Rs. 150 crores atTier II capital by way of private placement of unsecuredredeemable bonds at 13.75% p.a. for a tenor of 60 months toaugment its Capital Adequacy.The business indicators are given below : Rs. in crores FY 1996 FY 1997 FY 1998 FY 1999 FY 2000Deposits 14589 15973 19329 21914 24318Advances 7504 7254 8667 10117 11573Branches 1354 1371 1380 1402 1425