IOB considers forging an alliance
IOB considers forging an alliance Indian Overseas Bank (IOB) may form an alliance with foreign and private banks to reach markets outside its network and venture into the sophisticated structured products market, reports Business Standard. The alliance could be a precursor to a possible consolidation in the future. CMD S A Bhatt has said that, the bank is looking out for an alliance as it wants to expand its reach in regions where its presence is small and give it knowledge and expertise in areas such as derivatives and structured products. The public sector bank expects to crystalise plans for a tie-up by end of the financial year. >It is said that some banks have approached IOB for an alliance, however, nothing has materialized yet. The alliance could be a step towards merger and acquisitions, when the Indian financial sector is opened up further.
Shares of the bank closed down Rs 3.95, or 2.79%, to Rs 137.6. The total volume of shares traded was 43,669 at the BSE. (Friday)
