The net profit of Indian Overseas Bank rose to Rs 231 crore for the third quarter of 2010-2011 as compared to Rs 101 crore in the quarter of 2009-10.

Reportedly, the relative profit growth was whopping 127% as the total income generated was Rs 3,452.86 crore (22%) in the third quarter from Rs 2,828.65 crore of the same quarter during the last fiscal year.

With the net interest margin improving with an increase of 0.58% in addition to the last year’s 2.69%, the net interest income (NII) reached Rs 1,130 crore owing to NII increase by 42%.

The bank reported that it registered the deposits of Rs 1,25,062 crore with about 17% increase from Rs. 1,06.249 crore of the previous year along with a raise from Rs 79,407 crore to Rs 1,00,129 crore indicating about 26% growth in its total advances,.

Apparently the bank also mentioned of its plans to gain Rs 500 crore from international markets. Despite recovering well in Gross non performing asset (NPA) as bad loan declined slightly to 3.26% from its previous 4.05% and the net NPA also dropped from 2.17% to 1.51%.

According to the instructions and norms laid out by Reserve Bank of India, the bank needs to provide Rs 210 crore in the fourth quarter of 2011 fiscal to achieve 70% by March 31 and in the third quarter, the bank has made provision coverage of 65.37%. Overall the total business of the bank grew by 21.3 per cent to Rs. 2,25,191 crore as on December 31, 2010 from Rs. 1,85,656 crore compared to the same period in December 31, 2009.