IOB registers net profit Rs 1018 crore for FY

Chennai, Apr 23: The nationalised Indian Overseas Bank (IOB) was poised for a strong growth by recording a net profit of Rs 1008 crore for the financial year ended March 2007, as against Rs 783 crore in the year 2005-06.

Talking to newspersons here soon after the bank's annual board meeting, T S Narayanasamy, Chairman and Managing Director(CMD) of the bank said the total income of the bank had increased by 26 per cent to register Rs 6219.12 crore as against Rs 4947.41 crore in 2005-06.

Mr Narayanasamy said the net interest income which reflected the strength of bank's core business, rose from Rs 1855.52 crore in 2004-05 to Rs 2560.80 crore and registered a growth of 38 per cent in two years.

The CMD said as of March this year, the aggregate deposits rose by 36.05 per cent from Rs 50,529 crore to Rs 68746 crore while Gross credit rose by 34.01 per cent from Rs 35759 crore to Rs 47923 crore and the credit ratio stood at Rs 69.71 per cent in the same period, he added.

He also pointed out that the total bank of the business had touched Rs 1,16,668 crore as against Rs Rs 86,289 crore in 2005-06.

He said the gross NPA reduced in real terms from Rs 1227.55 crore in March 2006 to Rs 1120.21 crore, a reduction of nine per cent over last year, despite a huge increase in gross credit. The net NPA stood at 0.55 per cent as against 0.65 per cent in March 2006 and the NPA Coverage stood at 76.98 per cent, he added.

Mr Narayanasamy also pointed out that after the recent merger of the Bharat Overseas Bank (BOB), IOB's total branches rose to 1781, of which, 713 branches were brought under core banking system. The CMD said of the total non-interest income, other income from core banking operations had increased by 35.40 per cent from Rs 75.16 crore to 101.77 crore, while fee income from sale of insurance and mutual fund products and merchant banking busines rose by 152.78 per cent from Rs 30.12 crore to Rs 77.50 crore during the fourth quarter of the year 2006-07.

He said, the cost of income ratio was also brought down to 41.52 per cent from 47.80 per cent in 2006-07. This was mainly due to a reduction in operating costs and a higher growth in income levels, he added.

He said the return on average assets had improved from 1.35 per cent to 1.40 per cent, book value per share from Rs 56.08 to Rs 71.40 and the return on net worth had increased beyond 30 per cent.

He also pointed out that the total income of the bank for the year had increased by 26 per cent to register Rs 6219.12 crore as against Rs 4947.41 crore in the year 2005-06.

UNI