CRAR of Indian Overseas Bank dips in Q1

Mumbai, July 27 (UNI) Indian Overseas Bank (IOB) is just one among all other public sector banks in the country as regards the problem of lesser deposit and more advance was concerned.

Briefing the media here today while disclosing the quarterly results of the bank during the current fiscal, the CMD of the bank, T Narayanasami, said that the capital to risk assets ratio (CRAR) of the bank has declined from 14.06 per cent in June last year to 13.37 per cent last month.

It was merely a couple of days back that the Governor of Reserve Bank of India, YV Reddy had expressed his concern towards the current trend of decline in deposits and increase in loans by the banks in the country.

Mr Narayanasami attributed it to the factors like increase in loans and capital charge for market risk. For example, the loans have increased by over Rs 10,000 crore. Similarly, the Tier 1 capital alone crossed nine per cent to reach 9.14 per cent as against the figure of 7.36 for the same quarter last year.

Later talking to UNI, Mr Narayanasami said that it might be due to the lack of resources at a time when the oil prices were shooting up. However, he added that ''Our steps are on to check the trend by way of effective credit asset liability management''.

It is despite the fact that the low cost deposits of the bank have improved by approximately 20 per cent when compared to the first quarter of last year, he said.

The bank's operating profit registered an increase of 21.21 per cent to Rs 222.04 crore as against Rs 496.49 crore in the first quarter. Net interest incomerose by Rs 92.40 crore during the period, he said.

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