Date:31/07/2004 URL: http://www.thehindubusinessline.com/2004/07/31/stories/2004073101610800.htm

Back IOB net rises 26 pc in Q1

Our Bureau

Chennai , July 30

INDIAN Overseas Bank (IOB) has reported a 26 per cent growth in net profits for the first quarter at Rs 174.60 crore.

Mr S.C. Gupta, Chairman and Managing Director, said that the performance had come in a period when pressure on profitability was on the increase. "But sufficient cushion in the form of unrealised gains is available."

Treasury gains contributed about Rs 165 crore of the Rs 233 crore of other income in this quarter, Rs 80 crore higher than the gains made in the same period last year.

Operating profit was also higher by an identical amount at Rs 353.33 crore.

The bank was able to bring down its cost of deposits to 5.03 per cent as of June 2004 from 5.57 per cent at the end of March 2004.

This was mainly due to an increase in the proportion of low-cost demand deposits, which stood at 34 per cent of total deposits at the end of June 2004.

Mr Gupta said, "Efficient asset-liability management resulted in net interest margin rising a bit to 3.63 per cent."

On whether organic growth opportunities had reached a plateau, Mr Gupta said: "Inorganic growth is to be embraced only when it adds value. We are open to an acquisition if something interesting comes up."