<p>The drive to bring down high-cost and bulk deposits resulted in 1.88 per cent decline in total deposits as on December 31, 2012 on a sequential basis for public sector lender Indian Overseas Bank.<br /><br /></p>.<p>Besides, the bank has also reported a growth of just 2.82 per cent in gross advances for the quarter ended December 31, 2012.<br /><br />It's Chairman & Managing Director M Narendra said, “We reduced our bulk deposits from 34 per cent (as a percentage of total deposits) as on September 30, 2012 to 22 per cent as on December 31, 2012. That’s why overall deposits have declined.”<br /><br />He added that the bank will strive to bring it down to 15 per cent by March 31, 2013.<br />Narendra was speaking to reporters on Sunday after inaugurating a string of dedicated centres to cater to large corporate and mid-corporate borrowers in Bangalore. <br /><br />On a sequential basis, IOB's gross advances were up 2.82 per cent, from Rs 1,53,393 crore as on September 30, 2012 to Rs 1,57,734 crore as on December 31, 2012. <br />Deposits were down from Rs 1,89,115 crore as on September 30, 2012 to Rs 1,85,542 crore as on December 31, 2012. Narendra said that he expected the bank to post a net interest margin (NIM) of 2.75 per cent.</p>
<p>The drive to bring down high-cost and bulk deposits resulted in 1.88 per cent decline in total deposits as on December 31, 2012 on a sequential basis for public sector lender Indian Overseas Bank.<br /><br /></p>.<p>Besides, the bank has also reported a growth of just 2.82 per cent in gross advances for the quarter ended December 31, 2012.<br /><br />It's Chairman & Managing Director M Narendra said, “We reduced our bulk deposits from 34 per cent (as a percentage of total deposits) as on September 30, 2012 to 22 per cent as on December 31, 2012. That’s why overall deposits have declined.”<br /><br />He added that the bank will strive to bring it down to 15 per cent by March 31, 2013.<br />Narendra was speaking to reporters on Sunday after inaugurating a string of dedicated centres to cater to large corporate and mid-corporate borrowers in Bangalore. <br /><br />On a sequential basis, IOB's gross advances were up 2.82 per cent, from Rs 1,53,393 crore as on September 30, 2012 to Rs 1,57,734 crore as on December 31, 2012. <br />Deposits were down from Rs 1,89,115 crore as on September 30, 2012 to Rs 1,85,542 crore as on December 31, 2012. Narendra said that he expected the bank to post a net interest margin (NIM) of 2.75 per cent.</p>
