IOB has reported a net increase in its net profit

By | September 17, 2011

A recent press report said that Indian Overseas Bank (IOB) has reported an increase of 0.64 per cent in its net profit for the quarter ended September 30 at Rs 207.46 crore as against Rs 206.15 crore in the last year of same period. The bank’s total income for the quarter stood at Rs 4,822.56 crore during the second quarter of current fiscal compared to Rs 3,074 crore during the corresponding period of previous fiscal, an increase of 56.84 per cent.

M. Narendra, chairman and managing director, IOB said that the decrease in net profit was due to the higher provisioning in the non-performing assets (NPA) along with incremental advances and standard asset provisioning. He also said that there might be a rise in the profit if the NPA are reduced.  The credit basket of the bank includes home loan, personal loans, business loans, car loan, education loans etc.

During the Q2 ended September 30, the Gross NPA of the bank stood at Rs. 3,898 crore which was Rs. 3326 crore in the same period of the last fiscal. The net interest income of the bank has increased 32.43 per cent at Rs 1,266.39 crore during the period from Rs 956.30 crore in the same period of last fiscal. The total business grew from Rs 2.70 lakh crore in the first quarter of current fiscal to Rs 2.90 lakh crore by the Q2. They fix the target as Rs 3.50 lakh crore by end of current fiscal. The bank is also in the process of employing nearly 3,500 staffs.

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About Pradeep Yuvaraj

Pradeep Yuvaraj is a Co-Founder and Director at Finerva Financial Solutions Private Limited, a financial education company focused on personal finance education. He has penned over 250 articles relating to Personal Finance and clocked over 500 hours of educating individuals on managing personal finance. He is a serial entrepreneur and has been associated with 7 Start-ups. His entrepreneurial experience spans industries as varied as Education, Gas Engineering, Automobile Design, Software development and more recently a Pure play presentation design company. Prior to turning entrepreneur in 2005, he has worked for 3 of the top ten companies of the world - Shell, ExxonMobil and Total SA. This experience included handling Branch Operations, Channel Sales and Business Development across 5 states over a period of 8 years. He holds an MBA from Symbiosis and an Electronics Engineering Degree from the University of Pune.

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