Indian Overseas Bank today said its net profit grew by 13.5 per cent at Rs 233.43 crore in the first quarter ended June 30,compared to the year ago period even as the company said it would take two months to decide on plans to raise USD 500 million through medium term notes.
The Chennai-based bank would utilise the fund to its overseas operations,Indian Overseas Bank Chairman and Managing Director M Narendra told reporters after declaring the bank’s first quarter results.
“We want another one or two months on that and also depending on international market conditions. You know a number of corporates require funds for overseas operations”,he said.
He observed that the bank would raise funds as and when the international market was conducive.
IOB would also require tier I capital of Rs 1,500 crore to fund its growth needs this year,he said,adding that the fund would be raised partly through government funding.
On the banks’ first quarter performance,he said the net profit of the bank grew by 13.5 per cent at Rs 233.43 crore as against Rs 205.58 crore registered in the year-ago period.
He said the growth in the net profit was due to increase in non-interest income of the bank.
The total income for the first quarter ended June 30,2012 rose to Rs 5402.84 crore from Rs 4331.77 crore registered during the same period of last year.
The total income for the quarter stood at Rs 19,578.12 crore. Total business grew by 23.28 per cent to Rs 3,33,248 crore from Rs 2,70,320 crore.
IOB’s total deposits grew to Rs 1,84,882 crore from Rs 1,51,173 crore registered during the same period of last year.
The net interest income increased to Rs 1,328.28 crore for the first quarter up by 11.84 per cent from Rs 1,187.63 crore.
Earnings per share for the quarter ending June 30,2012 stood at Rs 11.72. The Gross NPA as on June 30,2012 stood at Rs 4409.70 crore (2.97 per cent) as against Rs 3,291.64 crore during the same period last year.
The net NPA as on June 30,2012 stood at Rs 2,152.09 crore (1.48 per cent) as against Rs 1,258.16 crore (1.08 per cent) registered during the same period of last year.