Indian Overseas Bank (IOB) registered a 41.73 per cent increase in its March 2007 quarter net profit at Rs 289.76 crore as against Rs 204.45 crore in the corresponding period previous year. | |
| "The bank's has seen a considerable increase in its net interest margin (NIM), at 4.16 per cent this quarter compared to 3.89 per cent for the corresponding period previous year. Despite the cost of funds going up, we have not only been able to maintain the yield rate but also increase it considerably," T S Narayanasami, chairman and managing director, IOB, said. |
| |
| The total income of the bank, which declared a dividend of 30 per cent, in the last quarter rose to Rs 1,935.84 crore as against Rs 1,336.94 crore in the corresponding period of 2006, registering a growth of around 45 per cent. Net interest income (NII) increased to Rs 768.22 crore compared to Rs 541.09 crore, clocking a growth of 41.98 per cent. |
| |
| Interest income on investments increased by 15.79 per cent while interest income on money market deployment rose by 308.76 per cent. The bank's core operating profit registered a growth of 54.97 per cent to touch Rs 509.38 crore as against Rs 328.70 crore in the corresponding period last year, backed by almost 50 per cent increase in its interest income from core operations. |
| |
| Non-interest income other than treasury gains recorded a marginal growth of 6.24 per cent to Rs 138.10 crore in the last quarter of 2007 compared to Rs 129.99 crore in the corresponding period last year. |
| |
| This was due to a change in accounting format of amortization cost and revaluation loss on investments as advised by the Reserve Bank of India (RBI) on April 20, 2007, before which such losses were charged under provisions and contingencies. Without taking the above change into consideration, the non-interest income, excluding treasury gains, would have stood at 25.25 per cent. |
| |
| Of the total non-interest income, income from core banking operations increased by 35.40 per cent to Rs 101.77 crore from Rs 75.16 crore, while fee-based income from insurance, mutual fund products and merchant banking business rose by 152.78 per cent to Rs 77.50 crore compared to Rs 30.12 crore in the corresponding period of the previous year. |
| |
| In what could be termed as the highest-ever profit recorded, IOB's net profit in 2006-07 fiscal rose to Rs 1,008 crore, registering a growth of 28.73 per cent over Rs 783 crore recorded a year ago. |
| |
| Total income for fiscal 2007 stood at Rs 6,219.12 crore compared to Rs 4,947.41 crore for the year-ended March 2006, recording a growth of around 26 per cent. The bank's NII stood at Rs 2,560.80 crore compared to Rs 2067.18 crore a year ago, recording a growth of 23.88 per cent. Core operating income, excluding treasury gains, was Rs 5,981.75 crore, recording a growth of 26.90 per cent over last year. |
| |
| The bank's total business rose to Rs 1,16,668 crore in fiscal 2007 from Rs 86,289 crore in March 2006, clocking a growth of 35.21 per cent. |
| |
| IOB's aggregate deposits stood at Rs 68,746 crore, recording a growth of 36.05 per cent over Rs 50,529 crore a year ago. The bank's gross credit rose by 34.01 per cent to Rs 47,923 crore from Rs 35,759 crore last fiscal. The bank's credit-deposit (C-D) ratio stood at 69.71 per cent as on 31 March, 2007. |
| |
| Net NPA (non-performing assets) for fiscal 2007 stood at 0.55 per cent as against 0.65 per cent in March 2006. NPA coverage of the bank stood at 76.98 per cent and capital adequacy ratio (CAR) at 13.04 per cent. |
| |
| "In the coming year, we might slow down on credit expansion and re-balance our portfolio. We will review and go slow in lending credit to segments like real estate and consumer loans. Also, we are planning to step up our low cost deposits from 36 per cent to 42 per cent," Narayanasami added. |
| |
| The bank has set a target of 25 per cent net profit, with 30 per cent growth in deposits and 20 per cent in advances for 2007-08. |
| |
|
| |
