Credit growth for IOB at highest ever
Chennai: The Indian Overseas Bank's has said that its credit grew by over Rs5,000 crore in the last financial year, which is the highest in any year for the bank.

According to the bank, outstanding advances, as at March 31, 2005, exceeded Rs26,000 crore. Credit expansion was funded through sale of securities, he said. Without revealing figures, officials said that the bank's net profit for last year would be higher than in the previous year.

The bank has been able to bring down its net-NPA to less than 1.25 per cent. Cash recovery last year was over Rs330 crore, against the target of Rs250 crore. The bank said that nearly Rs40 crore of the recoveries were from written-off accounts, and therefore directly added to the net profit.

Among the major recoveries last year was that of the Ideal Jawa account. The bank received its dues of Rs19 crore from the erstwhile motorbike manufacturer. Another recovery was a sum of Rs11 crore from a textile mill in Kanchipuram. However, the Rs45-crore dues from the Chennai-based Easun group of companies remained elusive.

In its budget for 2005-06, IOB has projected a credit growth of Rs4,000 crore, deposit growth of Rs3,500 crore and a NPA recovery of Rs285 crore.
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