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Indian Overseas Bank has more than doubled its net profit for the quarter ended June 30, 2014, at ₹271.72 crore, from ₹124.79 crore reported for the comparable quarter in the previous year.
Total income stood at ₹6,284.69 crore, up from ₹6,187.15 crore registered last year.
Gross NPA (non-performing assets) at the end of the quarter stood at 5.84 per cent (₹10,350 crore) against 4.45 per cent (₹7,432 crore) last year. Net NPA was at 3.85 per cent (₹6,643.62 crore) as against 2.81 per cent (₹4,580 crore) in the corresponding quarter of 2013-14.
Announcing the results at a press conference here, M Narendra, Chairman and Managing Director of the bank, said the slippage during the quarter increased to ₹2,649 crore, from ₹1,800 crore in the previous-year quarter.
He attributed the steep increase mainly to ₹380-crore slippage reported by its Singapore branch.
The bank has funded many Indian subsidiary companies in Singapore. Though most of them have been servicing their loan regularly, the Singapore regulatory authority downgraded certain accounts on the basis of inherent weaknesses of their parent companies back in India, he explained.
The CASA (current account savings account) ratio stood at 24.5 per cent (25.61 per cent). It plans to open 400 new branches during the current fiscal, which will take the total number of branches to over 3,700 by the end of the year.
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