Indian Overseas Bank could report a good performance in its platinum jubilee year with a significant rise in deposits and advances and in net interest income. The measures adopted by the bank to control costs helped boost the bottomline.

Addressing presspersons here on Monday, M. Narendra, Chairman and Managing Director, said, treasury operations, corporate and retail banking resulted in a healthy growth.

The directors have proposed a dividend of Rs. 5 against Rs. 3.50 per share in the previous year.

The bank registered a growth of 55 per cent in operating profit to Rs. 2,860.63 crore in the year ended March 31, 2011, from Rs. 1,844.62 crore in the previous year. The net profit rose by 52 per cent to Rs. 1,072.54 crore from Rs. 706.96 crore. Net earnings stood at Rs. 19.63 against Rs. 12.98 per share in the previous year

Total income was higher by 17 per cent to Rs. 13,326.57 crore from Rs. 11,389.03 crore.

Total expenditure, excluding provisions and contingencies, stood at Rs. 10,465.93 crore against Rs. 9,544.41 crore with interest expenditure accounting for Rs. 7,893.44 crore (Rs. 7,077.90 crore). The bank has provided a sum Rs. 89 crore towards transitional liability on a proportionate basis on employee benefits, Rs. 49.31 crore towards part of the additional gratuity fund requirement and a net sum of Rs. 340.01 crore towards additional pension fund liability.

Total business grew by 35.2 per cent to Rs. 2,59,020 crore as on March 31, 2011, from Rs. 1,91,577 crore as on March 31, 2010. Deposits registered a rise of 31 per cent at Rs. 1,45,299 crore against Rs. 1,10,795 crore and advances 40.86 per cent at Rs. 1,13,791 crore against Rs. 80,782 crore. Gross NPA was Rs. 3,089.59 crore against Rs. 3,611.08 crore and the net NPA at Rs. 1,328.42 crore (Rs. 1,994.97 crore).

The net NPA ratio had come down to 1.19 per cent from 2.52 per cent and the provision coverage ratio was 70.45 per cent. The capital adequacy ratio was comfortable at 14.55 per cent as per Basel-II norms.

Mr. Narendra said the total capital funds of the bank improved to Rs. 15,255.90 crore from Rs. 11,721.20 crore due to raising of Tier-II bonds for Rs. 1,967 crore and the allotment of shares to the Union Government on a preferential basis amounting to Rs. 1,054 crore (including share premium) apart from retention of profits.

The new initiatives in the platinum jubilee year included opening of 75 branches and 75 ATMs and the adoption of 75 villages for comprehensive development.

The bank was allotted 1,273 unbanked villages out of which 781 villages had been covered already.

The bank has introduced a system for customers to send their grievances through SMS from mobile phones, besides launching interbank mobile payment service.

Keywords: IOB

More In: Companies | Business