The Hindu : IOB net up 21 p.c.

Online edition of India's National Newspaper
Thursday, Jan 29, 2004

Business

Business

IOB net up 21 p.c.

By Our Corporate Reporter

CHENNAI, JAN. 28. Indian Overseas Bank (IOB) has reported a 21 per cent increase in net profit to Rs. 142.01 crores in the third quarter ended December 31, 2003 from Rs. 116.95 crores in the year-ago period. Total operating profit (profit before provisions and contingencies) has risen to Rs. 336.69 crores from Rs. 236.70 crores.

Announcing the results at a press conference here today, S. C. Gupta, Managing Director, IOB said, the better performance was due to an impressive growth in core operating income, comprising interest and fee based income and the success in cost compression.

In the nine months ended December 31, 2003 total business crossed the Rs. 58,500 crore mark with deposits contributing Rs. 36,699 crores and advances Rs. 20,227 crores.

The global operating profit was up 61 per cent at Rs. 959.30 crores as compared to the corresponding period last year. The net profit was Rs. 435.42 crores (Rs. 277.88 crores).

While non-food credit grew by 15.9 per cent against 9.49 per cent growth for the industry, the bank has reported a decline of Rs. 450 crores under food credit.

Asked on the Union Government's move seeking public sector banks to reduce interest rate on loans extended to Food Corporation of India by 150 basis points, Mr. Gupta said the bank's interest income would come down by only Rs. 7-8 crores due to the reduction in food credit and it would have negligible impact on the bottomline.

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