The Indian Overseas Bank is planning to concentrate on retail banking, recovering non-performing assets, selling insurance products and foreign exchange business to boost its income and profit, according to bank general manager A L Chandramouli.

While talking to reporters in Madurai on Wednesday on the bank's second public issue, Chandramouli said the bank's margin of profit from advances had been coming down in view of the cut in the interest rate and the only way to make profit amidst stiff competition was to diversify.

He said the bank's profit from gold business also had fallen from Rs 20 crore (Rs 200 million) to Rs two crore (Rs 20 million). But it was still in that business as it continued to be a profit-making venture.

The foreign exchange business stood at Rs 18,000 crore (Rs 180 billion) and there was scope for improving it, and so also the insurance sector. The NPA recovery was being done on daily basis.

He said the bank would soon join with four or five banks to use the ATM facilities owned by the banks across the country for mutual benefit.