Indian Overseas Bank (IOB) posted a marginal increase in net profit for the quarter ended September 30, 2011 to Rs 207.46 crore as against Rs 206.15 crore in the same period last year. Total income for the quarter stood at Rs 4,822.56 crore, an increase of 56.84 per cent from Rs 3,074 crore.
The decrease in net profit was due to the higher provisioning in non performing assets (NPA) along with incremental advances and standard asset provisioning, said M Narendra, chairman and managing director, IOB.
“We expect the net profit to go up by last quarter of the fiscal, if we are able to recover more and control the NPA,” he said.
Gross NPA was up to Rs 3,898 crore during the period from Rs 3,326 crore in the same period last fiscal.
Net interest income increased 32.43 per cent to Rs 1,266.39 crore (Rs 956.30 crore). Total business grew from Rs 2.70 lakh crore in the first quarter of current fiscal to Rs 2.90 lakh crore. The bank would reach the target of Rs 3.50 lakh crore by the end of current fiscal. The bank is also in the process of adding around 3,500 people to its staff, he said.
