The net profit of IOB has been trebled in the fourth quarter

By | March 29, 2011

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.

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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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