Indian Overseas Bank (IOB) has reported a 36 per cent drop in its net profit for the third quarter ended December, 2013 due to higher provisions for bad and doubtful loans and restructured accounts on the back of increasing non-performing assets (NPAs).
Net profit fell to Rs. 75.07 crore from Rs. 116.50 crore in the year-ago period, a decline of 35.5 per cent. Operating profit stood at Rs. 960.73 crore against Rs.1,017.05 crore.
M. Narendra, Chairman and Managing Director, said the net profit should be looked at from the point of overall operational efficiency of the bank as money had gone into strengthening the balance sheet of the bank. “We are focusing more on core deposits as also improving recovery,” he added. Provisions against bad loans were almost flat at Rs.811 crore compared with the year-ago period.
Net interest income was up 8 per cent at Rs.5737.52 crore against Rs.5333.14 crore.
Total income stood at Rs.6,190.26 crore against Rs.5,846.98 crore, up six per cent.
Karur Vysya Bank
The net profit of Karur Vysya Bank declined by 5.5 per cent in the third quarter ended December 31, 2013, as compared to Rs.113.04 crore for the corresponding quarter in the previous fiscal.
The net interest income declined marginally to Rs. 305.11 crore from Rs. 308.44 crore to Rs.305.11 crore and other income to Rs. 105.61 crore from Rs. 105.49 crore.
The net interest margin was 2.56 per cent as compared to 3.20 per cent in the year-ago period.
