IOB net profits dips 16.3% to Rs 132 cr in Q2

Bank's total income drops by 8% to Rs 5,515 crore from Rs 5,999.7 core

Indian Overseas Bank has reported a 16.35% drop in net profit of Rs 132.5 crore during the quarter ended September 30. 2013 as compared to Rs 158.4 crore.

Bank's total income increase by eight% to Rs 5,999.7 core from Rs 5,515 crore. Total business of the Bank stood at Rs 3.89 lakh crore as on September 30,2013.

M Narendra, chairman and managing director, Indian Overseas Bank commented that loss of treasury income to the tune of around Rs 400 crore and the bank booked transfer loss of Rs 96 crore on transfer of investments from AFS/HFT book to HTM book, during the quarter were attributed to the fall in profit.

Bank's total capital funds stood at Rs 17,745.2 core as on September 30,2013 as against Rs 17,137.83 core.

CASA ratio stood at 25.37% as September 30,2013 as against 25%.

Credit deposit ratio increased to 82.88% from 81.11%.

Gross NPA as on September 30, 2013 stood at Rs 8,202 crore with Gross NPA ratio was at 4.65%.

Narendra said the gross NPA should be looked from the improved cash recovery, upgradation and technically write off. NPA provision for the quarter was Rs 485 crore as compared to Rs 454 crore, a year ago. Net NPA stood at Rs 4,875 core with net NPA ratio of 2.83% respectively.

He noted, cash recovery during the second quarter was Rs 222.63 crore as compared to Rs 198.58 crore.

Restructured accounts dropped to 9.74% from 11%. These assets were worth around Rs 18,356 crore as on June dropped to Rs 17,173.83 crore as on September 30, 2013 (Basel II).

The Bank has opened 1012 branches in the last three years and these branches have contributed Rs 13,716 crore, this excludes specialised branches adding that it will be more than Rs 26,000 crore, said Narendra.

CASA of these branches was at around 45%.