Indian Overseas Bank looks for opening in Africa

New Delhi (PTI) Indian Overseas Bank is eyeing entry into Africa and convert its representative offices in Dubai and China into branches as part of its efforts to expand foreign operations.

“We are looking for some openings in Africa ... we have just initiated the process,” Indian Overseas Bank Chairman and Managing Director M. Narendra said.

The bank is also looking at converting its representative offices in Guangzhou, China, and Dubai to full service branches.

The bank would seek regulatory approval from the regulator concerned for the same, added Narendra.

The Chennai-based lender has six full-fledged overseas branches — two in Hong Kong and one each in South Korea, Thialand, Sri Lanka and Singapore — along with two remittance centre in Singapore at Boon Lay and Serangoon.

The bank plans to raise up to USD 500 million (about Rs. 2,250 crore) from the overseas market, in next two months, to fund foreign business.

IOB has approved USD 1 billion medium term note (MTN) programme.

“The first tranche of up to USD 500 million could happen in April or may be in March if our work is over,” Narendra said.

The bank reported over two-fold growth in net profit at Rs. 231.66 crore, for the third quarter ended 31 December, 2010, as against Rs. 101.70 crore in the same of quarter previous year.

While, for the period under review, total income grew to Rs. 3,452.86 crore from Rs. 2,828.65 crore.

Total business grew to Rs. 2, 25,191 crore at the end of December 2010 from Rs. 1, 85,656 crore a year ago.