Date:28/04/2005 URL: http://www.thehindu.com/2005/04/28/stories/2005042804161700.htm

Business

IOB net profit up 27 p.c. at Rs. 651 crs.

Corporate Reporter

CHENNAI: The highest ever credit growth of Rs. 4,981 crores coupled with efficient asset liability management enabled Indian Overseas Bank to achieve a perceptible improvement in profitability in the year ended March 31, 2005.

Announcing the financial performance here on Wednesday, S. C. Gupta, Chairman and Managing Director of the bank, told presspersons that the net profit of the bank rose by 27 per cent to Rs. 651.36 crores from Rs. 512.76 crores in the previous year even with a decline in profit on sale of investments by Rs. 108 crores. Besides the revaluation of securities transferred from `available for sale' category to `held to maturity' adversely impacted treasury earnings by Rs. 80.45 crores during the year under reference, Mr. Gupta said.

The bank has proposed a final dividend of 10 per cent, taking the total dividend to 24 per cent.

Total income stood at Rs. 4,590.85 crores against Rs. 4,494.76 crores in the previous year.

The bank could contain its domestic cost of deposits at 4.82 per cent (5.57 per cent), in spite of an increase in volume of deposits and a rise in deposit rates, Mr. Gupta said.

Gross deposits increased to Rs. 44,241 crores from Rs. 41,482 crores and gross advances to Rs. 26,274 crores from Rs. 21,293 crores. The credit-deposit ratio stood at 58.96 per cent (49.82 per cent). The gross NPA declined to 5.28 per cent from 7.40 per cent and the net NPA declined to 1.27 per cent from 2.85 per cent.

The proposed GDR issue of 70 million shares was likely by August, Mr. Gupta said.