IOB eyeing BhOB's Bangkok operations

Indian Overseas Bank is buying out the stakes of six bank shareholders in Bharat Overseas Bank, BhOB, reports CNBC-TV18. It already holds a 30% stake in Bharat Overseas Bank. It had bought the stake at Rs 155 per share. Initially Bharat Overseas Bank would be a wholly owned subsidiary, and there can be a merger later.

With this synergy, IOB would get 102 branches that BhOB has. This would be of strategic importance to IOB. IOB is also eyeing BhOB's operations in Bangkok.

The total assets of IOB stand at Rs 50,815 crore versus Rs 3,214.4 crore of BhOB. The net NPA of IOB stands at 0.48% versus 1.87% of BhOB. The Capital Adequacy Ratio of IOB is at 13.37% versus 11.24% of BhOB.