IOB posts 13.5% growth in net profit

The Indian Overseas Bank (IOB) has posted an increase of 13.5 per cent in net profit at Rs 233.43 crore for the quarter ended June 30, 2012, as against Rs 205.58 crore registered during the same period the previous year. The bank’s total income stood at Rs 5402.84 crore for the quarter, compared to Rs 4331.77 crore posted during the corresponding quarter of last financial year, an increase of 24.72 per cent.

The growth was despite the pressure from increased provisioning done towards additional counter cyclical buffer of Rs 75 crore instead of the targeted Rs 50 crore and also the incremental Non Performing Asset (NPA), said M Narendra, chairman and managing director, Indian Overseas Bank.

“The non-performing assets (NPA) is slightly higher due to a lot of accounts, in lower, middle and the upper segments facing difficulty. Some of them had to undergo restructuring again. There is also challenge from the current global economic issues,” said Narendra.

The slippage for the quarter stood at Rs 865 crore compared to Rs 485 crore during the same period last year. This includes around Rs 379 crore from industry, around Rs 412 crore from agriculture and personel including retail and small scale customers was around Rs 90 crore, among others, he added.

According to an IOB announcement, the gross NPA stood at Rs 4,409.70 crore, at 2.97 per cent, compared to Rs 3,291.64 crore at 2.76 per cent during the period ended June 30, 2012. The net NPA is at Rs 2,152.09 crore, which is 1.48 per cent, during the quarter, as against Rs 1,258.16 crore, at 1.08 per cent, for the same period of last financial year.