Business Daily from THE HINDU group of publications
Tuesday, Oct 31, 2006
ePaper


News
Features
Stocks
Cross Currency
Shipping
Archives
Google

Group Sites

Money & Banking - Financial Performance
Corporate Results - Public Sector Banks
Robust interest income lifts IOB net 25 pc

Our Bureau

Aims at Rs 1.2-cr biz target; to mobilise retail deposits, increase fee income


MR T.S. NARAYANASAMI

Mumbai , Oct. 30

Strong growth in interest income has lifted the net profit of Indian Overseas Bank by 25 per cent for the second quarter ended September 30 to Rs 249.85 crore (Rs 198.49 crore).

The net interest income was Rs 611.91 crore (Rs 517.3 crore) while the net interest margin stood at 4.01 per cent (4.1 per cent).

Total deposits increased by 20.31 per cent to Rs 57,018 crore while gross credit grew by 40.28 per cent to Rs 41,141 crore.

On the deposit-credit mismatch, Mr T.S. Narayanasami, Chairman and Managing Director, IOB, said, "The system as a whole has not been getting long-tenor deposits. That is why we are raising long-term funds as Tier II capital and focusing on low-cost deposits."

The bank's share of low-cost current account and savings account deposits (CASA) to total deposits fell to 37.66 per cent (38 per cent) as on September 30.

Cost of deposits rose to 4.99 per cent (4.62 per cent) and the yield on advances climbed to 9.49 per cent (8.93 per cent). Provisions were lower at Rs 54.14 crore (Rs 91.21 crore). The bank saw recoveries of a little more than Rs 100 crore up to September 30, said a senior official from the bank.

Treasury profits dipped to Rs 9 crore (Rs 60 crore), pulling down other income. Fee income (excluding treasury income) grew to Rs 142.08 crore (Rs 104.88 crore). For the six months ended September, the net profit was Rs 471.89 crore (Rs 381.68 crore).

IOB will mobilise retail deposits, increase fee income and focus on effective NPA management.

More Stories on : Financial Performance | Public Sector Banks

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Stories in this Section
Workshop on forex management


Rupee gains, breaches 45
Oriental Bank's Q2 net up 51 pc after GTB write-offs
Robust interest income lifts IOB net 25 pc
Indian Bank net grows 60 pc
YES Bank Q2 net up 50 pc
PNB posts 20-pc rise in PAT; deposit costs down
Syndicate Bank Q2 net rises 17%
RBI rate hike a given
Bond prices down by 3 paise
UCO keen to rejig capital
Credit demand strong in Q2, says RBI
Call rates rule at 6.8-6.9 pc
Bharat Overseas merger by fiscal-end
Book on 50 yrs of banking growth in Karnataka


The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2006, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line