Indian Overseas Bank has laid an ambition to open 40 new specialized agri business branches to focus on the rural lending, with two of the branches in Andhra Pradesh, according to Mr. M Narendra, Chairman and Managing Director of Indian Overseas Bank.
After inaugurating the new premises of the regional office of IOB, he said, "There is immense potential for such branches in Andhra Pradesh too, and we are initially planning two such branches in Godavari district".
Mr. Narendra said that the bank will be focus on lending to small farmers and agri-processing units rather than promoting high-tech agriculture. Around 70 per cent of the branches are in the rural and semi-urban areas. The bank has also pumped in additional investments of Rs 616 crore apart from crop loans.
Mr. Narendra also said that the bank had introduced special loan schemes for urban horticulture. According to this scheme, a borrower could take loan of Rs 25ooo to Rs 2.5 lakh for raising a roof garden or a backyard garden. While, institutes can borrow up to Rs 25 lakh. The bank is aiming to lend at least Rs 100 crore under the head during the current year.
The bank is also focusing on the small and medium enterprise by opening SME loan processing center.