The Hindu Business Line : IOB net up 27 pc

INDIAN Overseas Bank has reported a net profit of Rs 651.36 crore for the year ended March 31, 2005, against Rs 512.76 crore for 2003-04 - - a growth of 27 per cent.

The bank has recommended a final dividend of Rs 1 per share (10 per cent) which takes the total dividend for the year to Rs 2.40 (24 per cent).

Addressing a press conference, the Chairman of the bank, Mr S.C. Gupta, said that the bank's outstanding advances as on March 31, 2005 stood at Rs 26,274 crore, 23 per cent more than Rs 21,293 crore a year earlier.

The deposits grew to Rs 44,241 crore (Rs 41,482 crore).

The total business therefore increased to Rs 70,500 crore, a growth of 12 per cent over the last year.

Net NPA declined to 1.27 per cent from 2.85 per cent. Gross NPA stood reduced to 5.28 per cent from 7.4 per cent. Seventy six per cent of gross NPAs are covered by provisions.

Cash recovery out of NPAs during the year was Rs 345 crore, against the target of Rs 250 crore.

The capital adequacy ratio has improved to 14.21 per cent from 12.49 per cent. Mr Gupta said that the increase in net profit for the year happened despite several negatives.

The bank had to book depreciation of Rs 62 crore for the fall in the value of securities. In the previous year, the bank made a profit of over Rs 80 crore when Government bought back securities — the benefit was not there last year.

Further, towards the end of the year deposit rates increased, which put pressure on the margins.

Other income declined to Rs 639.80 crore (Rs 740.65 crore).

The proposed GDR issue is likely to happen by August, Mr Gupta said.

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