IOB plans recovery of $302.8M from loan accounts

Indian Overseas Bank is hoping to recover around US$302.8M this fiscal to reduce its non-performing assets, said a top bank official Saturday.

Its third quarter profits went down by 53 percent due to restructuring of loan accounts

According to bank chairman and managing director M. Narendra, the bank has restructured their loan book worth 726.8 million, which in turn resulted in reversal of US$15 million interest income in two major loan accounts. The restructured accounts belonged to companies in telecom tower, power distribution, paper and other sectors.

He said the company is targeting to recover Rs.1,500 crore this fiscal.

The bank's overall non-performing assets stands at US$801.7 million.

The bank reported a massive 53 percent decline in net profit at US$21.8 million for the quarter ended Dec 31, 2011, against US$46.7 million during the like period of the previous financial year.

Total income was up 45 percent at US$1.012 billion during the quarter under review, compared to US$697 million in the year-ago period, the company said in a regulatory filing.

According to him the bank's total business grew from Rs.225,191 crore in March 13,2010 to Rs.299,555 crore, recording a growth of 33 percent.

He said the bank will increase branch network by 300 to 2,700 branches by the end of this fiscal and the number of branches in Tamil Nadu will touch 1,000.

"Last calendar year we opened 354 branches including 11 asset recovery branches," Narendra said.