IOB plans to restructure SME, corporate loans

CHANDIGARH: State-run Indian Overseas Bank is planning to restructure its SME and Corporate loans by extending the tenure of repayment, Executive Director A K Bansal said today.

"We are getting applications from our customers regarding restructuring of loans. In order to address the issue we have facilitated them by offering longer repayment schedules and we are thinking to further facilitate them," he said.

Bansal said the dollar appreciation has impacted the importers. Also, the corporates who have raised money under FCCB (Foreign Currency Convertible Bond) route are under pressure and they are finding it difficult to repay, he said.

The Bank's NPA has touched Rs 3,898 crore as on September 2011, whereas it was around Rs 3,200 crore as on March 31, 2011.

On NPAs, he said the reasons behind the increase is the real estate sector, which is facing slowdown, delay in projects, bad recovery from agriculture sector.

Bansal was speaking at a seminar by Chandigarh Management Association (CMA) in association with Indian Overseas Bank (IOB) on "MSME In India - Challenges & opportunities."

Source: EconomicTimes