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IOB Q2 net a tad up at Rs 207 cr on higher provisions
Indian Overseas Bank (IOB) has reported a net profit of Rs 207 crore in the second quarter of FY12 as against Rs 206 crore in the corresponding quarter of last fiscal.
Chennai-based Indian Overseas Bank 's (IOB) second quarter (July-September) net profit was a tad up to Rs 207 crore compared to Rs 206 crore, recorded in the same quarter of previous fiscal year. The sharp decline in profit level is primarily on the back of higher provisions and contingencies, which doubled from Rs 305 crore to Rs 636 crore year-on-year.
However, net interest income or the difference between interest earned and expended jumped more than 32% to Rs 1,266 crore YoY, supported by higher loan book growth. Loans expanded at 44% to Rs 1.27 lakh crore while deposits climbed 38% to Rs 1.64 lakh crore.
Net non-performing asset (NPA) ratio deteriorated from 1.08% to 1.21% quarter on quarter. This seems to have resulted in higher provisioning for bad assets.
Total income increased 56.84% to Rs 4,822.56 crore from Rs 3,074.74 crore during the same period.
In the quarter ended September 2011, the bank has revised the base rate from 10.25 % to 10.75% for all advances linked to base rate.
