According to recent press reports Indian Overseas Bank, has recorded a net profit of Rs 434 crore for the fourth quarter ending March 31, 2011, which is three times higher than the net profit for the same period the previous year.
Mr. M. Narendra, Chairman and Managing Director, Indian Overseas Bank, said that the bank’s board of directors have recommended dividend of Rs 5 a share.
For the full year 2010-11, the bank has made a net profit of Rs 1,072 crore, 52 per cent higher than the Rs 707 crore for 2009-10. The net profit includes recoveries of Rs 193 crore from bad loans previously written off. It recovered another Rs 130 crore from non-performing accounts in respect of which it had stopped debiting interest.
Mr. M. Narendra said that bad loans were still a problem, but lesser than the previous year. He added saying that the fresh build up of bad loans amounts to Rs 2,169 crore, compared with Rs 3,127 crore in the previous year. He also said that the liquidity position was comfortable
The officials of the bank pointed out that most of the loans are backed by collateral security and, therefore there would not be problems in recovering the loans. The loan category encompass the arenas of Personal Loan, Home Improvement Loan, Car Loan, Housing Loan, Agricultural Loans, Educational Loan, Commercial Vehicle Loan, Corporate Loans, NRI Home Loans and more.