Financial Daily from THE HINDU group of publications
Tuesday, Sep 14, 2004
Financial Daily from THE HINDU group of publications Tuesday, Sep 14, 2004 |
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Money & Banking
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Public Sector Banks IOB rules out fresh equity infusion Our Bureau
Kolkata , Sept. 13 THE RBI's decision to increase CRR will drain around Rs 220 crore of liquidity for the Indian Overseas Bank. The latter, however, maintains that the central bank's move will not make any major difference to its profitability. IOB, according to its CMD, Mr S.C. Gupta, hopes to improve business and add to its earnings profile. The idea is to factor in the CRR hike as well as boldly face a scenario marked by higher inflation and pressure on treasury profits. He was talking to newspersons here on Monday. The bank, meanwhile, is looking at better year-end numbers, including meeting a higher aggregate business target. It managed to improve operating profit to Rs 1,325 crore (up from Rs 794 crore) in 2003-04. Net profit during the period increased to Rs 512 crore from Rs 416 crore. IOB, Mr Gupta said, currently has a "comfortable" capital adequacy position 12.49 per cent in 2004 compared to 11.3 per cent in the previous year. A fresh equity infusion has been ruled out. The bank on Monday announced the launch of its gold card scheme in the city with a view to provide more credit to exporters. IOB plans to boost its export credit portfolio and hopes to rope in more borrowers from among the exporter community, Mr Gupta told newspersons.
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