Indian Overseas Bank Q2 up at Rs 207.46 cr

Indian Overseas Bank (IOB) has posted an increase of 0.64 per cent in net profit for the quarter ended September 30 at Rs 207.46 crore as against Rs 206.15 crore in the same period of the previous year. The total income for the quarter stood at Rs 4,822.56 crore during the second quarter of current fiscal compared to Rs 3,074 crore during the corresponding period of previous fiscal, an increase of 56.84 per cent.

The decrease in net profit is due to the higher provisioning in the 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.

The Gross NPA has posted an increase at Rs 3,898 crore during the period ended September 30 from Rs 3326 crore in the same period of the last fiscal. The incremental NPA was at Rs 498 crore. It has also switched over to system based NPA.

The net interest income increased 32.43 per cent at Rs 1,266.39 crore during the period from Rs 956.30 crore in the same period of last fiscal.

The total business grew from Rs 2.70 lakh crore in the first quarter of current fiscal to Rs 2.90 lakh crore by the quarter ended September 30.

He added that the bank would reach the target of Rs 3.50 lakh crore by end of current fiscal. The bank is also in the process of adding around 3,500 people to its staff force.