Lower provisions and higher recoveries helped Indian Overseas Bank report a significant rise in its net profit at Rs.268.33 crore for the fourth quarter ended March 31, 2014, as against Rs.58.60 crore in the a year-ago period.
The bank had provided only Rs.313.43 crore towards non-performing assets (NPAs) as against Rs.779.57 crore in the previous year. Also, higher recoveries of Rs.1039 crore made during the full year 2013-14 as against Rs.630 crore in the previous year aided the bottomline growth.
Operating profit of the bank stood at Rs.1,191.09 crore during January-March 2014 period against Rs.1,145.33 crore in the same period previous year. Net interest income showed a decline of 12 per cent at Rs.1,144.99 crore (Rs.1,295.93 crore), while total income grew by 10 per cent to Rs.6,475.93 crore (Rs.5,898.15 crore).
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M. Narendra, Chairman & Managing Director of the Bank, said bank ended the full year 2013-14 with 6 six per cent rise in net profit at Rs.601.74 crore (Rs.567.23 crore) despite challenging economic scenario.
In 2013-14, IOB’s total income grew by 10 per cent at Rs.24,853.07 crore as against Rs.22,649.63 crore in the previous fiscal. Advances saw a 10 per cent rise at at Rs.181,081 crore. Gross non-performing assets (NPAs) saw a rise to 4.98 per cent as of March 31, 2014, from 4.02 per cent a year-ago and net NPA stood at 3.20 per cent as against 2.50 per cent.
Meanwhile, slippages were higher during 2013-14 and it stood at Rs.6,900 crore (Rs 5,600 crore). The board has recommended a dividend of 5 per cent. It had earlier announced an interim dividend of 7 per cent.
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