Kolkata: Indian Overseas Bank has projected to mobilise $650 million in foreign currency denominated deposits by end of September having already raised $300 million till date, managing director Ajay Kumar Srivastava said.The Chennai-headquartered state-owned lender aims to raise an overall $1 billion through non-resident deposits and external commercial borrowing, he said.The bank has mobilised the amount without any leverage, even as the Reserve Bank of India allowed banks to extend credit or loans to eligible non-residents to leverage their deposits parked in Indian banks."Mobilising higher deposits through a leverage route will be the last resort to us. We will think of it towards the end of August and September to meet the intended target of $650 million," Srivastava told ET.The bank has 4.5 lakh non-resident customers.IOB on Monday announced a 49.3% jump in first quarter net profit at 1,659 crore over Rs 1111 crore in the year ago period. Its operating profit increased by 14.2% at to Rs 2,693 crore, backed by 34.3% rise in net interest income at Rs 3,688 croreThe bank's net interest margin for the quarter rose to 3.37% from 3.04% a year back. Its gross advances grew by 22.8% year-on-year to Rs 3.22 lakh crore while deposits grew 13.7% to Rs 3.76 lakh crore.Its gross non-performing assets ratio improved to 1.33% at the end of June from 1.97% a year prior.
Indian Overseas Bank eyes $650 million foreign deposits by September
Indian Overseas Bank aims to gather $650 million in foreign currency deposits by September. The bank has already secured $300 million without utilizing leverage options. Overall, the lender plans to raise one billion dollars through deposits and external borrowing. This projection follows a significant 49.3% jump in first quarter net profit. The bank also reported strong growth in advances and net interest income.
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