IOB Q1 net profit up by 21% to Rs 73 crore
By Our Banking Bureau | 26 Jul 2002
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 IOBs 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.
