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IOB Q1 net
profit up by 21% to Rs 73 crore
Our Banking Bureau
26 July 2002
 New
Delhi: Indian
Overseas Bank (IOB) has registered a 21.52-per cent growth in its
net profit at Rs 72.96 crore during the first quarter of this
fiscal.
 “The
net profit for the first quarter was Rs 72.96 crore as against Rs
60.04 crore during the year-ago period, despite a Rs 20-crore
provision for voluntary retirement scheme expenditure,” says IOB
chairman S C Gupta.
Operating profit of the
bank increased by107.96 per cent to Rs 158.07 crore during the
quarter ended June 2002, mainly due to significant increase in
interest income.
Keeping its options open
for a public issue in the next fiscal, Gupta says the bank targets
to raise Rs 175 crore through subordinated debt papers for
increasing its tier-II capital by December 2002. The bank had
raised Rs 111 crore through an initial public offering (IPO) in
September 2000 to dilute the government holding by 25 per cent.
 “We
do not need fresh capital now as our capital adequacy ratio is
10.82 per cent. We may or may not go for an IPO next fiscal,”
Gupta says, adding that IOB’s capital adequacy ratio was 9.5 per
cent prior to the IPO.
Gupta says his bank
targets a 16-17-per cent growth in business (deposits plus
advances) this fiscal.
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