The Hindu Business Line : IOB's net tops Rs 1,000 cr

BHOB MERGER HELPS: Mr T.S. Narayanasami (right), CMD, Indian Overseas Bank, and Mr A.V. Dugade, ED, at a press conference in Chennai on Monday. - Bijoy Ghosh

Chennai April 23 A 34 per cent increase in gross credit, aided by a higher net interest margin, saw Indian Overseas Bank post its highest-ever net profit of Rs 1,008 crore for 2006-07, also the first time across the Rs 1,000-crore mark.

Yet, the little bit that helped the bank cross the mark came from a Rs 50-crore net profit from the erstwhile Bharat Overseas Bank, since merged with IOB. After coming under IOB's control last year, BhOB's performance soared close to ten times — its net profit in the previous year was Rs 5.5 crore. Sources in IOB said that this was due to buoyant recoveries.

The bank's board has recommended a dividend of Rs 3 per share (30 per cent).

At a press conference here on Monday, the bank's Chairman and Managing Director, Mr T.S. Narayanasami, said that the growth in net profit was mainly due to the core operations. Core operating income for the full year increased 27 per cent.

As at end March, IOB's deposits stood at Rs 68,746 crore (36 per cent increase) and advances Rs 47,923 crore (up 34 per cent).

For the current year, the bank projects a 30 per cent growth in deposits and a 20 per cent growth in advances. With capital adequacy ratio of 13.27 crore, the bank sees little need to worry about capital.

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