IOB to extend repayment periods on retail, MSME loans
10 Sep 2011
Indian Overseas Bank has decided to increase the repayment period for its retail loan customers in a bid to ease the impact of interest rate hike on EMIs.
The decision follows finance ministry directions to banks to help borrowers in the retail and MSME (micro, small and medium enterprises) segments to tide over the rising interest costs.
The board of directors of the Chennai-based IOB took a decision on Friday to increase the repayment period for retail and MSME borrowers, M Narendra, chairman and managing director of the bank, said at a 'meet the press' programme organised by the Dakshina Kannada Working Journalists Association.
He also allayed fears that credit growth in general, although a little subdued in the current economic scenario, has not affected credit demand from MSME, retail and agriculture sector.
Narendra hoped that IOB would be able to achieve a credit growth of 22 per cent against the industry projection of 18 per cent this fiscal.
During the current financial year, he said, IOB planned to locate 55 per cent of its new branches in rural and semi-urban areas.