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IOB records better performance in FY2019

Indian Overseas Bank, in its 82 years of operations, has for the first time recorded highest operating profit of Rs 5034 crore for the financial year 2018-19. It has also recorded a business mix of Rs 3,74,530 crore during the financial year. The bank has 3280 branches, 3450 ATM and 2705 IOB Mitras. During the financial year, it has cut down the number of loss incurring branches from 21.95% in FY 2015 to 4.79% in FY 2019. The bank said in a press release the turnaround initiatives taken by the bank on top line asset diversification and liability management has yielded the outcome in the P&L of the bank. R. Subramaniakumar, MD & CEO of the bank, said continuous improvement in all business parameters constantly, despite constraints for the last 3 years enabled the bank to reach the milestone. Having achieved the rhythm, the bank will sustain and improve further to bring value to all stakeholders in FY2020. The release said focused approach on diversifying the assets with thrust on retail, agri & MSME portfolios enabled the bank to improve the RAM share in domestic advances from 58.74% in March 2017 to 67.20% in March 2019. This rebalancing effort along with capital conservation and risk mitigant measures like limiting the exposure to stressed sector within the threshold, lending to AAA rated borrowers and government guaranteed accounts, concentration of low risk weight assets portfolio like jewel and housing loan segments helped the bank to reduce the risk weight assets from  Rs 1,69,148 crore in FY 2017 to Rs 1,22,585 crore in FY 2019, while the average credit moved around Rs 1,63,451 crore, it added.

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