Chennai: Public sector Indian Overseas Bank has reported over two-fold jump in net profit for the first quarter ended June 30, 2014 at Rs 271.72 crore.
The city-based bank had reported net profits of Rs 125.79 crore in the corresponding period of the previous year.
Total income for the first quarter ended June 30, 2014, grew to Rs 6,284.69 crore from Rs 6,187.15 crore registered during the same period of the previous year.
Gross NPA of the bank as on June 30, 2014 stood at 5.84 percent, as against 4.45 percent registered during the same period of the previous year.
Net NPA stood at 3.85 percent in the reported quarter as against 2.81 percent registered during the same period of the previous year.
Total business for the April-June 2014 quarter grew to Rs 3,99,188 crore, up by 9.94 percent, from Rs 3,63,087 crore registered during the same period of the previous year.
The bank said total deposits for the quarter grew to Rs 2,21,879 crore from Rs 1,96,213 crore in the year-ago period.
Gross advances increased to Rs 1,77,309 crore, as on June 30, 2014 from Rs 1,66,874 crore, registered during the same period of the previous year.
CASA Ratio stood at 24.50 percent as on June 30, 2014 as against 25.61 percent as on June 30, 2013, the bank said.
Later talking to reporters, Indian Overseas Bank Chairman and Managing Director M Narendra said the increase in net profit was due to operational efficiency and fund management.
"It is profits at branch level and some treasury profits also. Overall, you can see our gross profit is in right direction", Narendra, who will be superannuating by the end of this month, said.
On containing the gross and net NPA levels, he said, "I would definitely gauge that as we go forward by third and fourth quarter, we will be able to contain the NPA levels", he said.
To a query on fund raising plans, he had said at the bank's annual general meeting held recently that shareholders have approved raising up to Rs 3,500 crore.
"We have plans to raise funds via QIP and also look at rights issue. That will be up to Rs 3,500 crore. Partly we will raise by QIP. We have appointed the merchant bankers (ICICI, HDFC and some others). The decision would be taken when markets are conducive (to raise)...", he added.
On the bank's exposure in the housing and educational loans segment, he said as of June 30, 2014, the housing loan exposure grew to Rs 6,380 crore, up by 19 percent over the same period of previous year, while educational loan portfolio grew 18.54 percent to Rs 3,680 crore.
