History of Indian Overseas Bank (IOB)

Indian Overseas Bank (IOB) was founded on February 10th 1937, by Shri.M.Ct.M. Chidambaram Chettyar. MCt., as he was popularly known, was pioneer in many fields – Banking, Insurance and Industry. IOB was founded with the twin objectives of specializing in foreign exchange business and overseas banking. 

Founded	10th February 1937
Founder	Shri.M.Ct.M. Chidambaram Chettyar
Headquarter	Chennai
MD	Shri. R. Subramania kumar
No. of Branches	Around 3700
No. of ATM	Around 3300
Tagline	Good People to Grow With

A little background:

Indian Bank, funded by Chettiar capital, was formed after the infamous Arthurbot crash. M.Ct. Muthiah Chettiar became a director of the bank in 1914 and remained one till his death when his son MCt succeeded him in 1930 and served on the board till 1940 and then again from 1945 to 1949 when his son, M.Ct. Muthiah, became a director. Differences of opinion with the board led to Muthiah quitting it in 1950. With that ended the MCt family’s association with helping steer the Indian Bank.

By the middle of the 19th century, Chettiar capital started migrating to Ceylon, Burma and further east, to expand their business in commodity trading. But while the Chettiars were active in South and Southeast Asia during this period banking facilities in their homeland, South India, continued to be inadequate.

The Indian Overseas Bank, though thought of by some as a `Chettiar bank’, adopted from its very inception an approach quite different to the Indian Bank’s in matters of business, customers and staffing. Not only did it see helping Indians overseas as a priority, but at home it began to look at India’s growing industrial sector, in which Chettiars had played only a small role, as an area where its presence should be. Indian Overseas Bank commenced operations simultaneously in Madras, Karaikudi, the chief town of Chettinad, and Rangoon on February 10, 1937.

It was the bank that put the country’s name on the map of banking in the Far East, lending assistance and prestige to hundreds and thousands of Indians abroad. In 1969, 15 years after MCt’s death, IOB became one of the youngest among the 14 banks nationalised. 

Indian Overseas Bank founder M.Ct.M. Chidambaram Chettyar

In 1973, IOB had to wind up its five Malaysian branches as the Banking law in Malaysia prohibited operation of foreign Government owned banks. This led to creation of United Asian Bank Berhad in which IOB had 16.67% of the paid up capital. In the same year Bharat Overseas Bank Ltd was created in India with 30% equity participation from IOB to take over IOB’s branch at Bangkok in Thailand. BhOB was merged with IOB in 2005. BhOB is owned by seven banks, including Indian Overseas Bank (30%). The others are The Bank of Rajasthan (16%), Vysya Bank (14.66%), Federal Bank (10.67%), Karur Vysya Bank (10%), South Indian Bank (10%) and Karnataka Bank (8.67%).

Tagline: Good people to grow with

Milestones

• 1957 - Bank established its own training centre
• 1964 - Inauguration of IOB’s Head Office in Mount Road.
• 1974 - Official Language Department established in 1974
• 1984 - 1000th branch opened
• 1991 - Bank moved its Staff College premises to an own spacious learning zone at Koyambedu
• 1996 - Banks profit reached INR 100 cr. for the first time i.e. USD16.69Mn [1USD=Rs.59.9150]
• 2000 - Initial Public Offer. Follow on Public Offer in 2003.

      -The first public sector bank to introduce anywhere banking at its 129 branches in the four metros, is extending the connectivity to another 100 branches in Hyderabad, Bangalore, Ahmedabad and Ludhiana

-The first public sector bank in the country to introduce mobile banking services using Wireless Application Protocol (WAP).

• 2005 - Launched Debit Card
• 2006 - Launched VISA Card, Retail Sale of Gold and Non Life Joint Insurance Bank reached INR 1 lac crore mark in Total Business
• 2006 - 07 Net Profit reached INR 1000 Cr.(USD 229.78 Mn) [1USD= Rs.43.5200] Bharat Overseas Bank Ltd. Was merged with IOB and First Off site ATM at Kamatchi Hospital, Chennai
• 2009 - 100% CBS
• 2010 - 2000th Branch -Yamuna Vihar, New Delhi-opened
• 2011-12 - No. of Branches in Tamil Nadu reached 1000, and IOB celebrated Platinum Jubilee 2012-13. As on 31.3.2013, total deposits reached INR 202,135 cr. (USD 37,236Mn.) [1USD =Rs.54.2850]As on 31.3.2013,Total Advances reached INR 164,366cr. (USD30,278 Mn.) As on 31.3.2013,Total Business Mix is at INR 366,501cr. (USD 67,514Mn.), Total No. of Branches 2908
• 2014-15 Bank has surpassed the landmark of 3000 ATMs as on 31.07.2014 - Tirumalaipatti Branch
• 2015 - IOB launched new Mobile Banking, m Passbook applications.
• 2015-IOB started migration from its in house CBS platform to Finacle.
• January 2016- All branches successfully migrated from in house CBS platform "CROWN" to FINACLE.

Joint Ventures/Tie Ups

• IOB entered into Non Life Insurance Business with Universal Sompo General Insurance (USGI) Company Limited with equity participation of 19% along with Allahabad Bank, Karnataka Bank and Dabur Investments.

• Indian Overseas Bank(IOB) has tie up with Apollo Munich Health Insurance to provide specialised health and personal accident products to its customers.

Head Office:

763 Anna Salai, 

Chennai - 600002

Phone - +91 44 2852 4212

Fax - +91 44 2858 5675

Website - www.iob.in