The bank has also reported an impressive reduction in its net non-performing assets (NPA) level to 6.26 per cent from previous year's 7.64 per cent. The public sector bank recovered nearly Rs 160 crore of problem credit during the year, stated an IOB press release.

IOB is one of the public sector banks that has become eligible for autonomous status on the basis of its track record in capital adequacy, net worth, NPA levels and continuous profits.

The deposits for the fiscal year 1998 grew by 21.5 per cent, outpacing the 18.9 per cent growth registered by the banking system as a whole. The market share of Indian Overseas Bankin the total deposits collected increased from 2.87 per cent in March 1997 to 2.93 per cent in March 1998.

The global deposits of the bank grew to Rs 19,328.6 crore as on March 31, 1998, compared to Rs 15,972.6 crore reported in the previous year. Global advances grew to Rs 8,667.2 crore (Rs 7,254 crore) in March 1998 and domestic credit jumped by 17.6 per cent against the 15.6 per cent growth recorded the previous year. The bank achieved the priority sector credit target by extending 43.3 per cent of its advances in that sector.

Export credit improved from Rs 800.7 crore in 1996-97 to Rs 905.8 crore in 1997-98. The bank has also set up a trade desk in HongKong to assist Indian exporters.

The bank has marked to market 85 per cent of its investment portfolio. Its net domestic investment portfolio expanded from Rs 6422.4 crore to Rs 7191 crore as on March 31, 1998.

One of the major events during the year was the nomination of the bank as one of the agencies for import of precious metals. The bank tookthe lead to import bullion on consignment basis and to start screen-based trading for bullion dealers and retail trade as well. The value of imports of gold and silver exceeded Rs 2,200 crore.