IOB
expects better operating profits
Our Banking Bureau
15 October 2001
Mumbai: Indian
Overseas Bank (IOB), till recently a beleaguered PSU bank, is
slowly and steadily getting its acts together.
For the year 2000-2001,
the bank expects to add Rs 8,000 crore to its business and
generate operating profits of Rs 550 crore. In the previous year,
it had a total turnover of Rs 42,000 crore and had registered a
net profit of Rs 115 crore.
IOB CMD S C Gupta said:
“We intend to reduce the gross non-performing assets (NPAs) by
Rs 250 crore in the current financial year, which were at 11.81
per cent of the total advances as on 31 March 2001.” The bank is
also trying to bring down the cost of deposits from 7.44 per cent
as on 31 March 2001 to 7.25 per cent as on 31 March 2002.
“We are planning to
accomplish this by increasing the deposits under savings bank and
current accounts,” Gupta said. Between June and September of the
current year, the bank had mobilised Rs 500 crore in savings
accounts.
Under the one-time
settlement scheme for reducing NPAs, the bank had received Rs 42
crore from defaulting borrowers as against the Rs 115-crore amount
agreed for the settlement.
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