IOB Q2 net falls 24 percent

Syndicated from IANS | Published on Fri, Oct 26 2012 21:39 IST | 4 Views | Add comment

City-based Indian Overseas Bank closed the second quarter of current fiscal with 24 percent fall in its net profit owing to restructuring of some big loan accounts, said the bank chairman here.

"The bank's net profit has come down due to restructure of some big accounts amounting to around Rs.168 crore," M.Narendra, chairman and managing director, told reporters here Friday.

The bank posted a net profit of Rs.158.43 crore for the period under review down from Rs.207.46 crore earned during comparable period of the previous year.

IOB's total income went up by 14.36 percent to Rs.5,515.02 crore during the quarter under review as compared to Rs.4,822.56 crore posted during the corresponding quarter of the previous year.

The gross non-performing asset (NPA) for the period ending Sep 30 stood at Rs.5,930 crore as against Rs.3,898 crore as on Sep 30, 2011.

According to Narendra, the government is mulling infusion of around Rs.1,500 crore capital during the current fiscal.

Meanwhile IOB will merge two regional rural banks (RRB) - Baitarani Grammia Bank promoted by Bank of India and Kalinga promoted by UCO Bank- with its Neelanchal Grammala Bank.

Post amalgamation, IOB will float a new entity calld Odhisa Grammia Bank, Narendra said.

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