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INDIAN OVERSEAS BANK

Jan 20, 2020 351

HISTORY:

Indian Overseas Bank (IOB) was started on February 10,1937 by Shri.M.Ct.M. Chidambaram Chettyar. MCt.,He was popularly known and pioneered in many fields - Banking, Insurance and Industry.IOB was founded with the dual objective of specializing in foreign exchange and foreign banking business. Beginning with United India Life Insurance,he ventured into general insurance in the form of United India & General Insurance Company Ltd.He also installed Travancore Rayons, the first synthetic fiber unit in India, in Kerala.

The Indian Bank, funded by Chettiar capital, was formed after the infamous accident of Arthurbot. M.Ct. Muthiah Chettiar became director of the bank in 1914 and remained one until his death when his son MCt succeeded him in 1930 and served on the board until 1940 and then again from 1945 to 1949 when his son, M.Ct. Muthiah, became a director. Differences of opinion with the board led Muthiah to leave it in 1950. That ended the MCt family association with helping to run the Indio Bank.

In the mid-nineteenth century, the Chettiar capital began to emigrate to Ceylon, Burma and more to the east, to expand its business in commodity trading. But while the Chettiars were active in South and Southeast Asia during this period, banking facilities in their native land, South India, remained inadequate.

The Bank of India Abroad, though thought by some as a "Chettiar Bank", adopted from its very beginnings a very different approach to the Indian Bank in business affairs, clients and staff. Not only did he see helping Indians abroad as a priority, but at home he began to look at India's growing industrial sector, in which Chettiars had played only a small role, as an area where his presence should be. Indian Overseas Bank began operations simultaneously in Madras, Karaikudi, the main town of Chettinad, and Rangoon on February 10, 1937.

It was the bank that put the name of the country on the banking map in the Far East, giving assistance and prestige to hundreds and thousands of Indians abroad. In the year 1969, after MCt's death, IOB became one of the youngest among the 14 nationalized banks.

CHAIRMAN: Shri. R. Subramaniakumar