The Hindu : Business : IOB net up 21 p.c. at Rs. 222 cr.

Online edition of India's National Newspaper
Friday, Jul 28, 2006

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Business

IOB net up 21 p.c. at Rs. 222 cr.

MUMBAI: Indian Overseas Bank posted an increase of 21 per cent in net profit at Rs. 222.03 crore for the quarter ended June 30, 2006, as compared to Rs. 183.19 crore for the same quarter in 2005-06.

The total income increased by 23.62 per cent to Rs. 1,492.01 crore from Rs. 1,206.84 crore, the bank said in a release.

To raise $200 m

The bank will raise $200 million overseas funds in the form of five-year syndicated loans, which have been underwritten by six foreign banks, including HSBC, EBS and Bank of China Trust, Chairman and Managing Director, T. Narayanasamy, said here on Thursday.

The bank also planned to raise Rs. 700-800-crore over the next nine-months to bolster its capital adequacy, Mr. Narayanasamy said. On the merger of Bharat Overseas Bank (BOB) with IOB, the Chairman said, "we are on the right track.''

On the bank's roadmap for this fiscal, Mr. Narayanasamy said that the thrust would be laid on raising low-cost deposits, NPA recoveries and increasing fee-based income.

"Our target for fee-based income is Rs. 60 crore, of which we hope to earn Rs. 25-crore from sale of gold coins,'' he said.

PTI

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