IOB eyes Rs 10,000 cr biz from Pune with Suvarna Bank in fold

The Indian Overseas Bank is targeting a business of Rs 10,000 crore from Pune alone during the current fiscal with the acquisition of the assets and liabilities of the Pune-based Shree Suvarna Sahakari Bank Ltd (SSSB). All 12 branches of the SSSB will begin operating as IOB branches with effect from April 16. A majority of the existing staff of 340 have opted to continue to work and will be employed as fresh recruits, with no seniority, Mr S.A. Bhat, Chairman and Managing Director, IOB, has said. However, none of the charge-sheeted employees will be absorbed, he added. “The Reserve Bank of India has not given permission to take over Suvarna Bank’s branches, so 10 branches in Pune and two in Mumbai will be among the 93 branch licences given to IOB during 2008-09,” Mr Bhat said. The IOB programme to achieve 100 per cent core banking by April-end will be extended to these as well. IOB’s existing 10 branches in the city have a customer base of 40,000 and did business of Rs 3,000 crore during the last fiscal. Suvarna Bank has a deposit base of Rs 700 crore, advances of Rs 400 crore and 3 lakh customers. According to the current assessment, SSSB has gross NPAs of Rs 320 crore. With provision of Rs 240 crore, the net NPAs stand at Rs 70-80 crore