IOB's business crosses Rs 100000 cr in Q3, joins league of big banks

Mumbai, Jan 24 (UNI) Total business of the Indian Overseas Bank(IOB), which was Rs 81142 crore as on December, 2005, rose by 27.29 per cent during the third quarter ended December 31 to reach Rs 103289 crore and hence it has joined the league of big banks of the country now.

This honour has so far been achieved by only 27 nationalised banks (including all the subsidieries of State Bank of India).

Announcing the results before the media here today, the CMD of the bank T Narayanasami, who is likely to get promoted as the CMD of Bank of India in near future, said,''It is for the first time that my bank has achieved the honour to join the league of big banks''.

However, he accepted that the net interest margin (NIM) of the bank was recorded as 3.72 per cent during the third quarter as against 3.94 per cent during the corresponding period last year.

However, he reasoned that the marginal drop in the NIM was just quite in line with what is happening in the industry. Rising cost of resources and a general rising interest rate environment are the prime reasons behind it, he added.

The bank has posted a net profit of Rs 2467.80 crore for the quarter as compared to Rs 1972.15 crore for the same quarter last year, he said. Total Income has increased from Rs 1303314.1 crore for the same quarter last year to Rs 1671.70 crore during the third quarter this year, he said.

UNI