News

IOB takes BhOB reins (ET, BL 12.09.06) The Chennai-based government bank, Indian Overseas Bank (IOB) has finally taken control of Bharat Overseas Bank (BhOB), an unlisted private bank. This is the first instance of a public sector bank taking over a strong private sector bank without resorting to the moratorium route. IOB has virtually bought out other BhOB shareholders who now have a token stake left in the bank. BhOB was promoted by seven banks, with IOB being the largest shareholder with a 30% stake, while other shareholders were Bank of Rajasthan (16%), ING Vysya Bank (14.66%), Federal Bank (10.67%) Karur Vysya Bank (KVB) and South Indian Bank (10%) and Karnataka Bank (8.67%). All these banks, however, still hold a token of one share of BhOB.BhOB has a branch network of 102 branches while IOB has over 1,500 branches.