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Indian Overseas Bank (IOB) has posted a drop of 86.8 per cent in net profit at Rs 35.5 crore for the quarter ended March, as compared to Rs 268.3 crore profit for the same period of the previous financial year.
Total income grew 3.5 per cent to Rs 6,704 crore during the quarter, against Rs 6,476 crore for the same quarter of 2013-14. The board decided not to recommend any dividend for 2014-15. In the quarter ended December 31, the net loss was Rs 516 crore.
Initiatives in the fourth quarter towards reduction in the cost of deposits, improved recovery performance and stringent measures on cost control contributed to the results, the bank said.
Total business stood at Rs 4.25 lakh crore as on March 31, against Rs 4.09 lakh crore a year before, growth of four per cent. For 2014-15, there is a net loss of Rs 454 crore as compared to a net profit of Rs 601.7 crore the previous year. Total income rose to Rs 26,077 crore, as against Rs 24,853 crore the previous year, up five per cent.
Gross non-performing assets have gone up to Rs 14,922 crore (8.3 per cent) for the quarter, compared to Rs 9,090 crore (4.98 per cent) a year before.
Net NPAs rose to Rs 9,813 crore (5.7 per cent) as compared to Rs 5,658 crore (3.2 per cent) during the same period of the previous year.
The capital adequacy ratio under Basel-III rules is 10.11 per cent. It raised Basel-III-compliant additional tier-I perpetual bonds of Rs 1,000 crore during 2014-15 to augment capital requirements.
