IOB plans to raise overseas biz contribution to 15% in FY12

Chennai-based Indian Overseas Bank (IOB) today said it plans to raise the overseas business contribution from 10% to 15% in the current fiscal and open new branches in Dubai and China.

"We are planning to open new branches in Dubai and China. We have already sought permission from the Reserve Bank of India (RBI) in this regard," bank's Chairman and Managing M Narendra said here today on the sidelines of ICC organised banking summit.

IOB currently has six overseas branches – one each in Seoul, Bangkok, Singapore, Colombo and two in Hong Kong. It also has representative offices in China and Vietnam.

The bank also plans to expand its operations to African countries, Australia and New Zealand in the future.

IOB along with two other nationalised banks - Bank of Baroda and Andhra Bank – plans to set up a new bank in Malaysia.

"The new bank is expected to come up in another three months time," Narendra said.

To boost overseas lending, the bank is planning another medium term note (MTN) issue of around $350 million, he said.

The bank had earlier made a MTN issue of $500 million.

However, IOB remained equally focused on domestic business expecting to see a 30% growth during the current fiscal and aims to add 400 new branches this year across the country.