Chennai based public sector bank, Indian Overseas Bank (IOB) has said that it has recorded an increase of 7.60 per cent in net profit to Rs. 1.17 billion during the third quarter of the financial year.

The lender had recorded a net profit of Rs. 1.08 billion during the third quarter of the previous financial year. The bank's total income increased by 16.58 per cent to Rs. 58.47 billion during the quarter from October to December, 2012 compared to Rs. 50.15 billion in the same period of the previous year.

The bank reported that the interest earned recorded an increase of 15.83 per cent to Rs. 53.33 billion compared to Rs. 46.04 billion recorded in the third quarter of the previous year. The net NPA of IOB increased to 2.33 per cent on December 31, 2012 compared to 1.23 per cent on December 31, 2012.

Figures showed that the total deposits rose 11.12 per cent while gross advances increased 18.91 during the quarter. IOB's total deposits grew from Rs. 1,670.06 billion to Rs 1,855.73 billion in the December quarter and total gross advances increased from Rs 1,325.49 billion to Rs. 1576.13 billion during the third quarter.

The bank's Net interest income (NII) increased to Rs. 13.81 billion during the quarter compared to Rs. 12.21 billion recorded in the same quarter of the previous year.