CHENNAI, May 9: Public sector Indian Overseas Bank has set a growth target of 13-14 per cent in its total business during the current financial year, a top official said.
The city-headquartered bank was also looking at a recovery of about Rs 5,500 to Rs 6,000 crore this fiscal, Managing Director and CEO Ajay Kumar Srivastava said here on Thursday.
Indian Overseas Bank earlier in the day, posted a consolidated profit after tax of Rs 810.42 crore, for the January-March 2024 quarter from Rs 655.63 crore, registered in the same period of last year.
“We crossed a total business growth of Rs 5 lakh crore in March and we would like to continue on that growth path. The sectors we are looking at are manufacturing, government undertakings. We will also be focusing on traditional sectors like jewel, retail and housing,” he told reporters.
Srivastava said the bank was on a ‘stable’ growth path and in the quarterly performance of last six to seven quarters the bank has been on a steady growth. As on March 31, 2024, Indian Overseas Bank posted a total business of Rs 5,04,923 crore, as compared to Rs 4,49,892 crore registered same period of last year.
Net NPA has improved to 0.57 per cent as on March 31, 2024 as against 1.83 per cent recorded on March 31, 2023. “A key highlight of the financial year was Indian Overseas Bank’s exceptional control over slippages, with only Rs 1,517 crore accounting for 0.87 per cent of performing advance as on March 31, 2023. Gross NPA improved by more than 50 per cent to 3.10 per cent as against 7.44 per cent as on March 31, 2023”, the bank said.
To a query on total recoveries targeted this year, Srivastava said, “last financial year, the recovery has been Rs 4,549 crore and our plan is to go beyond, may be Rs 5,500 crore or Rs 6,000 crore, that will be this year’s target.”
He explained that total recovery for the financial year 2023-24 is Rs 4,549 crore out of which recovery from technically written off accounts is Rs 2,372.44 crore.
Recently, the bank said it has taken concerted efforts for reduction of Non-Performing Accounts (NPAs) and has adopted a multi-pronged approach to ensure maximum recovery from such accounts. The bank has published a sale notification that pertains to the sale of 92 NPA loans aggregating to an outstanding due of Rs 13,471.68 crore.
To another query, Srivastava said, “We do not see any challenges going forward and we will be maintaining and improving this performance.” (PTI)
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