The Hindu Business Line : IOB net profit up 13.5 pc in Q3

INDIAN Overseas Bank's net profit for the third quarter of the current year increased 13.5 per cent over the corresponding period of last year, mainly because of lesser provisioning.

Total income increased by Rs 12.60 crore — the rise in interest income got the better of decline in treasury profits by that amount.

But the bank's operating profit for the quarter slid nearly 3 per cent, because of a one percentage point rise in total expenditure as a proportion of total income.

The rise in interest income mirrors the growth in advances. The bank lent about Rs 3,900 crore during the quarter, while its deposits increased by Rs 1,180 crore. A retail bias is evident, as Rs 782 crore of the advances was home loans. Likewise, over Rs 1,000 crore of the deposits were the low cost `savings bank' type.

Addressing a press conference, IOB's Chairman and Managing Director, Mr S.C. Gupta, said that cash recovery during the quarter was Rs 187 crore, against a target of Rs 250 crore for the full year. In addition, about Rs 77 crore of assets turned standard. The bank's NPAs stood reduced 1.57 per cent, from 2.85 per cent as on March 31, 2004.

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