Business

Indian Overseas Bank net more than doubles

Indian Overseas Bank’s (IOB) standalone net profit for the quarter ended September rose 154% to ₹376 crore due to ‘strong performance’. “The bank has made a fresh start after six years,” said Partha Pratim Sengupta, MD & CEO.

“It will grow much stronger in coming quarters.”

Asserting that the RBI had removed IOB from its Prompt Corrective Action framework due to strong performance, he said curbs such as on branch opening and fresh recruitment had been removed. “We will be looking at expanding [number of] branches or restructuring some of them and recruiting more people.”

He also said the bank would be raising between ₹500 crore and ₹1,000 crore in the fourth quarter to meet tier-II capital norms. In FY23, the bank hopes to raise funds to meet capital growth either through tier-I capital or via equity, he said.

In the second quarter, interest income fell to ₹4,254 crore (₹4,363 crore); net interest margin dipped to 2.43% (2.57%); and net NPAs declined to 2.77% (4.3%).

For the September quarter, IOB had reported 30 fraud cases involving ₹959 crore, against which it has 100% provision.

Mr. Sengupta said total business rose to ₹4,90,408 crore from ₹4,78,365 crore. For the current fiscal, the bank has set a target of ₹2,56,000 crore in deposits and ₹1,60,000 crore in advances. “We might either achieve it or surpass it,” he said.


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Printable version | Dec 9, 2021 4:57:06 PM | https://www.thehindu.com/business/indian-overseas-bank-net-more-than-doubles/article37200238.ece

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