The Hindu : Business : IOB aims at Rs. 1 lakh cr. business volume

Online edition of India's National Newspaper
Friday, Jan 27, 2006

Business

Business

IOB aims at Rs. 1 lakh cr. business volume

Corporate Reporter

CHENNAI: Indian Overseas Bank continued to register a significant rise in its business levels to Rs. 81,142 crore at the end of December 2005 as compared to Rs. 68,503 crore in December 2004. While deposits increased by Rs. 6,228 crore to Rs. 49,397 crore advances registered a rise of Rs. 6,411 crore to Rs. 31,745 crore. The net profit was higher by 22.3 per cent to Rs. 197.22 crore in Q3 of 2005-06 from Rs. 161.21 crore in the year-ago period.

The core operating profit was Rs. 330 crore against Rs. 291 crore in the same period in the previous year.

The capital adequacy ratio was 13.14 per cent and the return on assets improved to 1.42 per cent (annualised) in December 2005 from 1.31 per cent in December 2004. Earnings per share for the third quarter improved to Rs. 3.62 from Rs. 2.96 in the year-ago period.

The bank has launched a slew of new insurance products and the total non-interest earnings of the bank, other than profit on sale of investments, went up by Rs. 20 crore to Rs. 124 crore. Relentless recovery efforts brought down the net NPA (non-performing assets) ratio to 0.78 per cent from 1.57 per cent.

The bank hopes to cross Rs. 1 lakh mark in respect of total business in the current financial year. IOB is planning to form a joint venture with Allahabad Bank and few other banks for distribution of insurance products.

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