4. INDIAN BANK
• Indian Bank is an Indian state-owned financial
services company headquartered in Chennai,
India.
• It has 22,000 employees, 2100 branches and is
one of the big public sector banks of India.
• It has overseas branches in Colombo, Jaffna, Sri
Lanka, Singapore, and 229 correspondent
banks in 69 countries.
• Since 1969 the Government of India has owned
the bank, which celebrated its centenary in 2007.

5. FORMATION
• Arbuthnot & Co, which failed, was considered the soundest of the
three. Parry's (now EID Parry), may have been the earliest of them
and Binny & Co.'s founders may have had the oldest associations
with Madras, but it was Arbuthnot, established in 1810, that was the
city's strongest commercial organisation in the 19th Century.
• A key figure in the bankruptcy case for Arbuthnot's was the Madras
lawyer, V. Krishnaswamy Iyer; he went on to organise a group
of Chettiars that founded Indian Bank.
• Annamalai and Ramaswami Chettiar founded Indian Bank (IB) on 5
March 1907, and it commenced operations 15 August 1907 with its
head office in Parry's Building, Parry Corner, Madras.

6. PRE NATIONALIZATION
• The 1960s saw IB expand domestically as it acquired
Rayalaseema Bank (est. 1939), Mannargudi Bank (est.
1932), Bank of Alagapuri, Salem Bank (est. 1925), and
Trichy United Bank. These were all small banks with
the result that all the acquisitions added only about 38
branches to IB's network. Trichy United had five
branches and its acquisition in 1967 brought the
number of IB branches up to 210.
• Then on 19 July 1969 the Government of India
nationalised 14 top banks, including Indian Bank. One
consequence of the nationalisation was that the
Malaysian branches of nationalised Indian banks were
forbidden to continue to operate as branches of the
parent

7. POST NATIONALIZATION
• In 1969 the Government of India nationalised Indian
Bank, and thirteen other banks.
• In 1990, Indian Bank rescued Bank of Tanjore (Bank of
Thanjavur; est. 1901), with its 157 branches, based
in Tamil Nadu.
• A multi-crore scam was exposed in 1992, where then
chairman M. Gopalakrishnan lent to small corporate and
exporters from the south amounting to 13 billion. The
amount was never paid back by the borrowers.
• Bank of Baroda bought out its partners in IUB
International Finance in Hong Kong in 1998. Apparently
this was a response to regulatory changes following Hong
Kong's reversion. IUB became Bank of Baroda (Hong
Kong), a restricted license bank.

8. DIVERSIFIED ACTIVITIES
• Ind bank Merchant Banking Services Ltd.
• Ind Bank Housing Ltd.
• Ind Fund Management Ltd.

9. REASONS FOR LOSES
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DEFECTIVE CREDIT APPRAISAL
SECURITIES INVESTMENT
ABSENCE OF PROPER RISK MANAGEMENT
DELEGATION AND RESTRICTIONS
BRANCH FUNCTIONS SCRUTINY
HIGH CREDIT WITHOUT PROPER ANALYSIS
IMPROPER MERGERS AND AQUISITIONS

10. •
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NON VERIFICATION ENDS USE FUNDS
POOR MONITORING AND COST OF QUALITY
SECURITIES ARE NOT PHYSICALLY INSPECTED
RBI GUIDE LINES HUGE CREDIT FOR NEW
COMPANIES
• MIS USE OF POWERS (ZONAL MANAGERS
PROVIDING CREDIT EXCEEDING THEIR LIMIT)
• BRANCH MANAGERS WERE NOT ALLOWED TO
SCRUTINY
• SELECTIVE SANCTIONS BY TOP MANAGEMENT

11. REASONS FOR LOSSES
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•
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Ind bank Merchant Banking Services Ltd.
Ind Bank Housing Ltd.
Ind Fund Management Ltd.
(PROVIDING LOANS FOR SHORT PERIOD AT
HIGH INTEREST RATES WITH OUT CD RATIO)

12. TURN AROUND STRATEGY
• REGULAR TOUCH WITH BORROWERS
• HR INITIATIVES
• OPEN COMMUNICATION BY TOP
MANAGEMENT
• SPECIAL TRAINING IN CREDIT APPRAISAL,
MONITORING AND FOLLOW UP SYSTEMS.
• ATTITUDE CHANGES
• DIRECT PARTICIPATE IN GENERAL MANAGERS.

13. • DISTINGUISH POWERS
• FOUR TIER STRUCTURE CHANGED THREE TIER
STRUCTURE
• SPECIAL COMMITTEES
• MANAGER POOLING TOGETHER IN CRITICAL
AREAS.

14. NEW SCHEMES
• QUICK CREDIT
• INTEREST RATE INCENTIVES FOR HOUSING
LOAN
• ENLARGING PERSONAL LOAN SEGMENT
• BEST CUSTOMER ODI’S
• EXCLUSIVE CREDIT MONITORING DEPT IN
HEAD OFFICE

15. RETAIL SECTOR IN BANKS
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VEHICLE LOAN
CONSUMER LOAN
HOUSING LOAN
GOLD LOAN
AGRICULTURE LOAN
EDUCATION LOAN
HOUSING LOAN
WITH LOW LENDING RATES.