Indian Overseas Bank has reported a sharp decline in its net profit in the first quarter ended June 30, 2013, at Rs. 125.80 crore against Rs. 233.44 crore in the same period in the previous year. However, the operating profit registered a growth of 24.5 per cent at Rs. 1,054.42 crore against Rs. 846.78 crore in the year-ago period.
Addressing presspersons here on Thursday, M. Narendra, Chairman and Managing Director, said the lower net profit was due to a higher allocation of Rs. 843.01 crore against Rs. 520.42 crore towards provisions and contingencies. The bank has, however, made a profit of Rs. 354 crore realised through sale of investments.
Total provisions, including the amount set aside for taxation, stood at Rs. 928.62 crore against Rs. 613.34 crore. Mr. Narendra said a higher amount of Rs. 728.23 crore was provided for non-performing assets (NPA) against Rs. 406 crore in the year-ago period.
The gross NPA stood at 4.45 per cent against 2.97 per cent, and the net NPA at 2.81 per cent against 1.48 per cent in the same period in the previous year.
Total business grew by 8.95 per cent to Rs. 3,63,087 crore from Rs. 3,33,250 crore. Deposits registered a rise of 6.13 per cent to Rs. 1,96,213 crore from Rs. 1,84,884 crore. Gross advances rose by 12.47 per cent to Rs. 1,66,874 crore from Rs. 1,48,366 crore.
The total income for the quarter under reference grew by 14.52 per cent to Rs. 6,187.15 crore from Rs. 5,402.85 crore. While interest income rose by 7.49 per cent to Rs. 5,402.63 crore from Rs. 5,026.16 crore, non-interest income more than doubled (108.27 per cent) to Rs. 784.52 crore from Rs. 376.69 crore due to the profit realised on sale of investments.