IOB REPORTS 17% RISE IN NET PROFIT

Growth in net interest income enabled Indian Overseas Bank report a 17 per cent increase in net profit to Rs 206 crore for the second quarter of 2010-11 compared with Rs 176 crore for the same period last year.

Mr S.A. Bhat, Chairman and Managing Director, Indian Overseas Bank, said that growth in advances was modest when compared with second quarter of the previous year.

Advances registered a growth of 9 per cent to Rs 88,072 crore in the last six months, he said.

Non-interest income, excluding profit on sale of investments, fell to Rs 15 crore as against Rs 150 crore. Talking on recovery, Mr Bhat said that the bank has recovered about Rs 900 crore in the first half of the current financial year.

In absolute terms, gross non-performing assets have declined to Rs 3,326 crore from Rs 3,611 crore in March 31, 2010, he said.

The bank's provision coverage ratio is at 60 per cent.

The Reserve Bank of India has permitted Indian Overseas Bank to achieve the stipulated PCR of 70 per cent by March 31, 2011.

The bank had to double its provision coverage to Rs 305 crore for the s econd quarter of 2010-11 as against Rs 122 crore for the same period the previous year.

SOURCE: http://www.thehindubusinessline.com/2010/10/30/stories/2010103051640600.htm