The Indian Overseas Bank (IOB) has reported a 24 per cent drop in net profit during the second quarter at Rs 158.43 crore, down from Rs 207.46 crore during Q2 of FY2011-12.
Chairman and managing director, M Narendra, said: “The bank had to restructure some big accounts, which affected the profit.” The restructured accounts amounted to Rs 168 crore, he added.
Total income rose 14.36 per cent to Rs 5,515.02 crore from Rs 4,822.56 crore, during Q2 of FY2011-12.
Provisions were at Rs 552 crore, compared with Rs 636 crore during the same period in the last financial year, down 13 per cent on a quarter-on-quarter basis.
Gross NPA (non-performing asset) as on September 30 stood at Rs 5,930 crore compared with Rs 3,898 crore as in September 2011.
The respective gross NPA ratios were 3.87 per cent and 3.07 per cent, respectively.
The total capital funds of the bank stood at Rs 17,137.83 crore as on September 30 against Rs 15,144.07 crore in September 2011.
“The government is considering infusing capital to the tune of around Rs 1,500 crore during the current fiscal,” said Narendra.
In the last financial year, the government had given IOB recapitalisation support to the tune of Rs 1,441 crore.
According to Narendra, the restructured accounts currently stand at Rs 14,775 crore.
Textiles (around Rs 1,360 crore), iron and steel (Rs 1,082 crore), power (Rs 3,438 crore), aviation (Rs 1,448 crore), telecom (Rs 1,055 crore), and small and medium enterprises (around Rs 730 crore) are the major sectors in the restructured book.
Narendra said of the bank’s recovery target of Rs 1,800 crore, Rs 553 crore had already been recovered.
