IOB Q2 net up 33% to Rs 501 cr, total income rises 15% to Rs 5,852 cr

Gross NPA down 6% during the quarter, net NPA up 11%; ratios improve in both spaces; lender came out of RBI's Prompt Corrective Action (PCA) on September 29, 2021

State-run Indian Overseas Bank (IOB) posted a 33 per cent increase in net profit during the second quarter of the current financial year ended on September 30 to Rs 501 crore, from Rs 376 crore in the same quarter of FY22.

During the period under review, the bank’s total income rose 15 per cent to Rs 5,852 crore, from Rs 5,091 crore during Q2FY22. Its gross non-performing assets declined by six per cent from Rs 15,666 crore during the second quarter in 2021-22 to Rs 14,726 crore during the same quarter this fiscal. GNPA ratios improved to 8.53 per cent from 10.66 per cent on a quarter on quarter basis. The lender came out of RBI's Prompt Corrective Action (PCA) on September 29, 2021. Net NPA during the quarter was up 11 per cent to Rs 4,148 crore with a ratio of 2.56 per cent, as against Rs 3,741 crore during the July to September quarter of 2021-22 with a ratio of 2.77 per cent.

IOB's operating profit for the quarter under review stood at Rs 1,419 crore as against Rs 1,135 crore a year ago. Its interest income rose to Rs 4,718 crore from Rs 4,255 crore during the July-September quarter in FY22.

Gross advances stood at Rs 1,72,713 crore during the quarter under review, compared to Rs 1,46,940 crore a year ago. The bank said that it has taken a decision of not taking fresh exposures in stressed sectors.

CASA of the bank stood at 42.97 per cent during the period, compared to 42.57 per cent a year ago. Total CASA increased to Rs 1,11,924 crore as against Rs 1,06,806 crore. During the quarter, its provision coverage ratio stood at 90.94 per cent compared to 92 per cent by the end of September 2021.