The Hindu : Business : Marginal rise in IOB's net profit

Online edition of India's National Newspaper
Sunday, Oct 31, 2004

Business

Business

Marginal rise in IOB's net profit

By Our Corporate Reporter

CHENNAI, OCT. 30. Indian Overseas Bank could report only a marginal rise in its net profit in the three months ended September 30, 2004 because of hardening interest rates and reduced income from treasury operations.

Announcing the results here today, S. C. Gupta, Chairman and Managing Director of the bank told presspersons that the net profit for the three-month period was Rs. 158.33 crores against Rs. 154.62 crores.

Total revenue stood at Rs. 1,100.07 crores against Rs. 1,131.55 crores in the year ago period. While interest earnings were higher at Rs. 982.28 crores against Rs. 925.89 crores, other income was lower at Rs. 117.78 crores against Rs. 205.65 crores.

In the half year ended September 30, 2004 the operating profit went up to Rs. 670.37 crores from Rs. 622.61 crores and the net profit to Rs. 332.93 crores from Rs. 293.40 crores.

The sustained focus on core lending operations and constant vigil on the expenditure front contributed to the operating profit during the half year under reference, Mr. Gupta said. The operating profit was higher despite shifting securities worth Rs. 2,096 crores from available for sale category to held to maturity category and the consequent revaluation loss of Rs. 60.77 crores. It also made a bulk provision of Rs. 83 crores towards wage arrears. The overseas operations were profitable with all the five branches reporting nil NPA, he said. Deposits stood at Rs. 43,499 crores registering a growth of 12 per cent over September 2003. Efficient asset-liability management towards betterment of deposit mix brought down the cost of deposits.. Gross advances at Rs. 24,002 crores registered a growth of 21 per cent. The bank stepped up agri lending by Rs. 575 crores towards implementation of special farm credit package. An interim dividend of 14 per cent (12 per cent) has been announced for the current year. Last year the total dividend was 20 per cent.

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