The Chennai based lender, Indian Overseas Bank has recorded extreme dip in net profit by 88 per cent to Rs 59 crore for the fourth quarter which ended on March 31, 2013, against Rs 529 crore in the corresponding quarter last year.
The decline in net profit was an outcome of provisioning for bad and doubtful debts and restructured accounts, said Chairman and Managing Director, Mr. M. Narendra.
Total income was Rs 5,898 crore which is 8.92 per cent increase over the same quarter previous year.
For the financial year ending March 31, 2013, net profit was down by nearly half, to Rs 568 crore from Rs 1,050 crore last year. Total income was Rs 22,649 crore from Rs 19,578 crore the previous year.
IOB bank's gross non-performing assets (NPAs) are in jeopardy of default at the end of the financial year, increased to Rs 6,607 crore as compared to Rs 3,920 crore last year.
"It was a difficult period. Not many companies came forward to restructure their loans," Mr. Narendra said.
Mr. Narendra said that the NPAs of international clients have gone up substantially. "We are going for speedy recovery this year," he added.
On the domestic front, the NPAs were mainly with small and medium businesses that are going through tough market conditions.
"This year, we should be able to contain the NPA level," Mr. Narendra said.