The Hindu Business Line : Credit offtake lifts IOB net 57 pc

BUOYED by credit offtake, Indian Overseas Bank achieved a higher net profit of Rs 435.41 crore for the first nine months of the current year, compared with Rs 277.87 crore in the corresponding period of last year — a rise of 56.76 per cent.

Net credit increased during the nine-month period by Rs 1,848 crore compared with Rs 1,798 crore in the corresponding period last year.

Operating profit increased to Rs 959.30 crore, up 61 per cent from Rs 596.46 crore previously.

At a press conference here on Wednesday, the Chairman and Managing Director of IOB, Mr S.C. Gupta, said 64 per cent of the operating profit came from the bank's "core operations" — lending. He said the bank's dependence on other income, mainly income from treasury operations, had been coming down.

Mr Gupta said the bank's net non-performing assets (NPAs) had come down to 3.83 per cent of its lendings from 5.23 per cent on March 31, 2003. He said IOB aspired to bring its NPAs to `nil' in three years.

He said that the bank's net NPA coverage had increased to 50 per cent from 45 per cent on March 31, 2003. Mr Gupta also noted that the bank's net interest margin had increased to 3.58 per cent from 3.14 per cent.

IOB came out with a public issue in September, which increased its paid-up equity from Rs 444.80 crore to Rs 544.80 crore. On the increased capital, the earnings per share went up to Rs 9.15 for the nine months as against Rs 6.25 for the comparable period last year.

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