Companies

Indian Overseas Bank Q4 profit rises to ₹268 cr

Our Bureau Chennai | Updated on April 29, 2014 Published on April 29, 2014

M Narendra, CMD

Higher income, lower provisioning boost performance

Indian Overseas Bank’s net profit for the fourth quarter of 2013-14 jumped five times on higher income and lower provisioning.

The Chennai-based public sector bank reported a net profit of ₹268.33 crore in the fourth quarter ended March 31, against ₹58.60 crore for the comparable quarter in the previous year.

For the quarter under consideration, the bank reported a business growth of 10 per cent in total income at ₹6,475 crore (₹5,897 crore).

Announcing the annual results of the bank at a media conference here on Tuesday, M Narendra, Chairman and Managing Director, said the steep growth in net profit could be attributed to considerable reduction in provisioning, increase in interest and non-interest income, and healthy recovery.

As there has been an improved recovery during the quarter, the bank has provided only ₹313.43 crore towards non-performing assets (NPA), against ₹780 crore provided last year.

Challenging year

“Though the entire year has been challenging and as a result NPAs have been mounting pressure on the entire industry, better control coupled with selling of some bad assets to asset recovery companies (ARCs) benefited the bank in keeping the profitability numbers high,” he said. He also added that while there had been a marginal increase in number of big NPA accounts, the bank could contain overall NPA portfolio in the last quarter.

For the full year, the bank has posted 12 per cent growth in total business at ₹4,09,957 crore from ₹3,66,501 crore in 2012-13.

Deposits

Total deposits grew 13 per cent to ₹2,28,000 crore. Net profit for the year was at ₹602 crore against ₹567 crore in the previous year period – registering a growth of 6 per cent. Total income went up 10 per cent to ₹24,900 crore from ₹22,650 crore.

Published on April 29, 2014
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