Indian Overseas Bank closes Q1 with Rs 327 crore net profit

Public sector Indian Overseas Bank (IOB) closed the first quarter of the current fiscal with a net profit of about Rs 327 crore, Managing Director & CEO Partha Pratim Sengupta said on Tuesday.

For the first quarter of the current fiscal, the IOB had posted a net profit of about Rs 327 crore as against about Rs 121 crore logged during the corresponding quarter the previous year, he told reporters.

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For the period under review, the IOB had posted a total income of about Rs 5,155 crore, down from about Rs 5,233 crore earned during the same quarter previous fiscal.

The IOB's total business rose to Rs 381,885 crore (deposits Rs 242,941 crore, advances Rs 138,944 crore) during the period under review from Rs 357,111 crore (deposits Rs 225,546 crore, advances Rs 131,565 crore) in the previous year.

Sengupta said the bank as been doing well relating to all key parameters during the past couple of quarters.

"We have written to RBI (Reserve Bank of India) requesting it to take us out of the PCA (Prompt Corrective Action) and are waiting for the response," he said.

According to him, the bank is focussed on recovery of loans, mobilising low cost deposits, and less capital consuming advances.

Sengupta said the bank is targeting a recovery of bad loans worth about Rs 4,500 crore and during the first quarter, the recovery was about Rs 1,100 crore.

The bank's gross non performing asset (GNPA) as on June 31, 2021 stood at Rs 15,952 crore as against Rs 18,291 crore as on June 31, 2020.

The Net NPA as on June 31, 2021 was Rs 3,998 crore as against Rs 6,081 crore as on June 31, 2020.

During the quarter that went by, IOB reported 17 cases of fraud involving Rs 115.42 crore and all has been provided for in the books.