New Delhi: The Reserve Bank of India (RBI) has taken several major actions on different government, private or cooperative banks. Public sector Indian Overseas Bank (IOB) is also involved in this action of RBI. However, there is a relief news for IOB now. Actually, the bank has come in profit after being in deficit for 18 consecutive quarters i.e. 54 months.

Earlier, the bank had a profit in the year 2016. According to the statement issued by the bank, there was a net profit of Rs 144 crore in the fourth quarter ended March 2020. The bank has earned profit due to significant reduction in stuck loans and reduced provisions. IOB CEO Karnam Shekhar said that the bank has made good recovery and has managed to control losses during the quarter. Karnam Shekhar said, "We have been successful in reducing the cost of debt. That means the provision is reduced. As a result, we were able to earn a profit of Rs 144 crore. For the last 18 quarters, we were only taking losses.

Shekhar said that it is not that profit is a one-time affair. The bank will continue this trend even further. Let us tell you that the bank is currently under the purview of the Reserve Bank of India (RBI) Immediate Corrective Action (PCA) rule. Under this, the bank is asked to increase working efficiency and emphasize on capital protection. At the same time, banks coming under this scope are also prohibited from giving loans.

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