IOB plans to restructure SME and Corporate loans

Indian Overseas Bank (IOB) is planning to restructure its SME and Corporate loans by extending the tenure of repayment, in order to address the issue of its customers. The state-run bank is getting applications from its customers regarding restructuring of loans. The bank has helped them by offering longer repayment schedules and is thinking to further facilitate them.

Importers have been impacted by the dollar appreciation. Also the corporate who have raised money under foreign currency convertible bond (FCCB) route are under pressure and they are finding it difficult to repay.

As on September 2011, the bank's NPA has touched to Rs 3,898 crore whereas it was around Rs 3,200 crore as on March 31, 2011. This was due to the increase is the real estate sector, which is facing slowdown, delay in projects and bad recovery from agriculture sector.