IOB net profit rises 22% to Rs 529 cr

Indian Overseas Bank (IOB) has posted an increase of 21.76 per cent in net profit at Rs 528.81 crore for the quarter ended March 31, against Rs 434.29 crore registered during the year-ago period. Total income stood at Rs 5,416.09 crore for the quarter ended March,compared with Rs 3,916.58 crore posted for the corresponding period of last year, an increase of 38.29 per cent.

The total business for 2011-12 grew to Rs 3,21,707 crore from Rs 2,59,020 crore during the previous year. The net non-performing assets (NPA) stood at Rs 1,907.44 crore,as against Rs 1,328.42 crore as on March 31, 2011, with net NPA ratio of 1.35 per cent and 1.19 per cent, respectively.

IOB would need additional capital of about Rs 9,500 crore by 2017-18 to maintain the capital adequacy ratio prescribed by the Base III international accounting standards, which according to Reserve Bank of India, would come into effect from January 1, 2013.