IOB's operating profit up 32 p.c.

Indian Overseas Bank registered a growth of 32 per cent in operating profit to Rs. 188.23 crores in 1999-2000 from Rs. 142.96 crores in the previous year. The operating profit, as a percentage to working funds improved to 0.70 per cent from 0.59 per cent, after fully meeting the extra load of wage settlements. This is revealed in a press release issued by the bank after finalisation of the balance sheet as on March 31, 2000.

In terms of the new provisioning norms in respect of standard advances introduced during the year, the bank set aside Rs. 25.78 crores. Total provisions on loan portfolio have gone up to Rs. 117.66 crores from Rs. 60.14 crores in 1998-99. The net profit was thus Rs. 40.34 crores against Rs. 55.34 crores. The capital adequacy ratio is 9.14 per cent against the requirement of nine per cent.

Global business of the bank has risen to Rs. 35,891 crores from Rs. 32,032 crores. Global deposits rose to Rs. 24,318 crores from Rs. 21,914 crores and advances to Rs. 11,573 crores from Rs. 10,118 crores. Domestic deposits have improved to Rs. 23,613 crores from Rs. 21,093 crores. Net advances have increased to Rs. 10,170 crores from Rs. 8,865 crores. Net advances in India were Rs. 10,079 crores against Rs. 8,151 crores. Nearly 91 per cent of the investments were marked to market as against the RBI norms of 75 per cent. The priority sector accounted for 44.9 per cent of total advances.

The bullion business since launch in November 1997, registered a turnover of Rs. 8,273 crores. The gold deposit scheme launched on March 2 has started gaining momentum. Foreign exchange turnover crossed the Rs. 15,000 crore mark. The outstanding export credit as at the end of March 2000 was Rs. 988.20 crores against Rs. 908.70 crores.

Canara Bank

Canara Bank has announced a 50 per cent growth in its profits for 1999-2000 at Rs. 923 crores against Rs. 615 crores in the previous year. Non-interest income of the bank has increased to Rs. 836 crores from Rs. 663 crores, recording a 26 per cent growth. The net profit too has increased by 50 per cent to Rs. 236 crores. The total business for the year was Rs. 72,000 crores.

Announcing the results, Mr. R. J. Kamath, chairman and managing director of the bank, attributed the rise in operating profit to recovery under loss assets, overall improvement in asset quality, reduction in interest cost and introduction of trading book.

Ms. Ranjana Kumar, executive director, said during the year the bank introduced facilities such as seven-day banking and extended business hours. The concept of `anywhere banking' was launched for providing networking services at 15 select branches. The bank also introduced scientific evaluation process to select candidates for promotion to managerial cadres, she added.

Lakshmi General Finance

Lakshmi General Finance could increase its disbursements under hire purchase by 24.9 per cent during the year ended March 31, 2000 to Rs. 221.92 crores from Rs. 177.68 crores in the previous year in spite of keen competition for available business. Gross disbursements stood at Rs. 258.33 crores. Income from financing operations was marginally lower at Rs. 79.15 crores against Rs. 80.79 crores while revenues under other income were higher at Rs. 7.68 crores against Rs. 4.51 crores.

The company has made full provisions in accordance with the RBI directives on prudential norms for non-banking finance companies. Provisions and write off accounted for Rs. 5.99 crores (Rs. 6.63 crores) and depreciation and lease equalisation Rs. 18.88 crores (Rs. 18.28 crores). Taxation claimed Rs. 5.30 crores (Rs. 5.32 crores). Despite lower margins the profit after taxation has risen marginally to Rs. 11.34 crores from Rs. 11.03 crores.

The company has already paid three interim dividends totalling 50 per cent absorbing Rs. 3.33 crores including dividend tax. There is no final dividend.

After allocating Rs. 2.27 crores (Rs. 2.22 crores) to statutory reserve and Rs. 6.05 crores (Rs. 5.50 crores) to general reserve, the surplus carried forward is Rs. 1.06 crores against Rs. 1.15 crores brought in.Total outstanding deposits stood at Rs. 110.91 crores (Rs. 121.15 crores) as deposit acceptance was regulated in line with the requirement of funds. The company raised Rs. 140 crores through the issue of commercial papers.

United Western Bank

United Western Bank has decided to come out with a bonus issue in the ratio of one share for every five equity shares held along with a right issue of one share for every two equity shares held, according to Mr. P.N. Joshi, Chairman of the bank. These will be subject to the approval of the Reserve Bank of India.

The bank has been paying dividends uninterruptedly for the past 63 years. It has declared a dividend of 30 per cent for the year ended March 31, 2000. Total deposits stood at Rs. 4,349 crores, advances Rs. 2,358 crores and the net profit Rs. 55.70 crores. The bank also has plans to enter the mutual fund business.

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