IOB reports Rs 268-cr profit in Q4

Bank's total income up by 10% at Rs 6,476 cr

The lender’s gross non-performing asset (NPA) stood at Rs 9,020.48 crore, as compared with Rs 6,607.96 crore in the corresponding quarter of the last financial year

Indian Overseas Bank has reported a net profit of Rs 268.3 crore for the quarter ended March 31, 2014, compared with Rs 58.8 crore for the same period last financial year.

For the fourth quarter, total income increased from Rs 5,898.1 crore to Rs 6,475.9 crore, on a year-on-year basis.

The lender’s gross non-performing asset (NPA) stood at Rs 9,020.48 crore, as compared with Rs 6,607.96 crore in the corresponding quarter of the last financial year.

IOB’s Basel-II Capital Adequacy Ratio stood at 11.15 per cent and Basel-III stood at 10.78 per cent.

M Narendra, chairman & managing director, Indian Overseas Bank said lower provisioning compared to the corresponding quarter, higher income and cash recovery benefits have helped the bank report a healthy growth in profit.

During the fourth quarter the lender provisioned around Rs 313.43 crore for NPA, as compared to Rs 779.57 crore, last financial year.

Narendra said though the NPAs are challenging, better control of monitoring aspects coupled with selling of some bad assets through asset recovery companies have helped the bank increase the profit.

On expansion, he said the bank will open 400 branches in 2014-15, of which around 63 per cent will be in rural and semi-urban areas. Last year, the bank had opened 365 branches and recruited 4,500 people.