Public sector lender Indian Overseas Bank (IOB) on Monday posted 22% year-on- year rise in its net profit at Rs. 529 crore for the quarter ended March 2012 as against Rs. 434 crore for the corresponding quarter of the previous year supported by healthy growth in interest income.
Net interest income (difference paid between interest earned and interest paid) grew by 11% to Rs. 1,341 crore from Rs. 1,215 crore during the same quarter previous year.
"We are targeting a 20% growth in deposits and advances with a focus on profitability," said M Narendra, chairman and managing director, IOB. "We plan to achieve total business (deposit plus advances) of Rs. 400,000 crore in current financial year up from Rs. 385,000 lakh crore in previous year."
Total income of the bank grew by 39 % to R5,415 crore from Rs. 3,917 crore for the corresponding quarter of the previous year.
During 2011-12, gross non-performing assets (NPA) stood at Rs. 3,920.1 crore as against R3,089.6 crore in previous fiscal with gross NPA ratio of 2.7% and 2.7% respectively.