Indian Overseas Bank (IOB) has reported a decline of 16.3 per cent in its net profit at Rs. 132.55 crore for the second quarter ended September 30, 2013, against Rs. 158.43 crore in the same period in the previous year. Total income has risen to Rs. 5,999.75 crore from Rs. 5,515.02 crore in the year-ago period.
Addressing presspersons here on Friday, M. Narendra, Chairman and Managing Director of the bank, said the reduced net profit was due to the category transfer loss of Rs. 95.98 crore towards the shifting of SLR securities worth Rs. 4,711.11 crore from AFS (available for sale) category to HTM (held to maturity). The bank had fully recognised the category transfer loss of Rs. 95.98 crore during the quarter, Mr. Narendra said. Treasury operations resulted in a loss of Rs. 90.37 crore due to the volatility in exchange rates, Mr. Narendra said.
Total business of the bank registered a growth of 13.58 per cent and stood at Rs. 3.89 lakh crore as on September 30, 2013 against Rs. 3.43 lakh crore as on September 30, 2012.
While deposits grew by 12.47 per cent to Rs. 2.13 lakh crore from Rs. 1.89 lakh crore, gross advances registered a growth of 14.93 per cent to Rs. 1.76 lakh crore from Rs. 1.53 lakh crore during the period under reference.
The gross NPA (non-performing assets) ratio stood at 4.65 per cent against 3.87 per cent in the year-ago quarter, the net NPA was 2.83 per cent against 2.25 per cent.