IOB Vizag zone H1 net up 121%

Indian Overseas Bank (IOB)'s Visakhapatnam zone has registered a 121 per cent growth in net profits in the first half of the current fiscal.

While the zone's net profit for the entire last fiscal was Rs 10.72 crore, it rose to Rs 10.37 crore in the first half of the current fiscal as compared to Rs 4.68 crore in last year's corresponding period, thus posting a growth of 121 per cent.

Similarly, the zone's new deposits was up at Rs 112 crore in the first half of the current fiscal as compared to Rs 25 crore in the last fiscal's corresponding period, thereby registering a growth of 348 per cent.

Speaking to Business Standard, AJ Prasad, senior regional manager of IOB, said: "We have been concentrating on low-cost and no-cost deposits. Due to this, our net profits increased more than 100 per cent."

"Last fiscal, the Vizag zone's total new deposits were to the tune of Rs 127 crore of which 28.46 per cent were low-cost and no-cost deposits. In the first half of the current fiscal, our new deposits rose to Rs 112 crore of which low-cost and no-cost deposits were 31.5 per cent. We are targeting to increase our low-cost and no-cost deposits to at least 35 per cent by the end of the current fiscal," he said.

Prasad said that the zone's cost of deposits was also reduced. "While our cost of deposits was 5.97 per cent last fiscal, it was condensed to 5.06 per cent by September 2004. We are aiming at reducing it further to 4.95 per cent by this fiscal end. Owing to this, we expect our net profits to go up to Rs 16 crore as against the last fiscal's Rs 10.72 crore," he said.

IOB's Vizag zone has opened 19,530 new savings and current accounts last fiscal. It is targeting to open more than 25,000 new accounts this fiscal.

"Around 10,740 new customers opened their accounts in IOB branches in the first half of the current fiscal," Prasad said. The bank has recently opened a currency chest at the Visakhapatnam main branch. Many new customers are opening their accounts to avail this facility, he added.

"Vizag zone's net NPA, which was 2.39 per cent last fiscal, was reduced to 1.55 per cent by the end of September 2004. We are targeting to reduce our net NPA further to 0.62 per cent by this fiscal end. The bank has already issued notices to 41 defaulters under the Securitisation Act to recover Rs 1.10 crore," Prasad said.

IOB's Vizag zone has 32 branches in the five coast districts from Srikakulam to West Godavari. The bank plans to open two more branches at Tanuku and Tadepalligudem by the end of the current fiscal.

"For the first time in Andhra Pradesh, we have introduced an information kiosk with touch-screen facility at one of our Visakhapatnam branches. We are planning to provide this facility to our other branches in a phased manner," he said.