IOB Q4 net up by 58% to Rs 552 cr on lower bad loan provisioning

Operating profit down 8%, asset quality improves with GNPA at 9.82% as against 11.69% a year ago

State-owned Indian Overseas Bank (IOB)  has posted a 58 per cent jump during the fourth quarter of the financial year ended in March to Rs 552 crore, as compared to the January to March quarter of 2020-21, on account of lower provisioning for bad loans.

The bank’s operating profit for the quarter ended March this year stood at Rs 1,614 crore, down 6 per cent compared to Rs 1,724 crore during the fourth quarter of 2020-21. The lender's asset quality improved with the gross non-performing assets (GNPA) seen at Rs 15,299 crore with a ratio of 9.82 per cent as against Rs 16,323 crore with a ratio of 11.69 per cent as on March 2021. The provisions for bad loans and contingencies for the quarter under review fell to Rs 1,014 crore as against Rs 1,380 crore in the year-ago period.

Net NPA during the quarter under review was contained to Rs 3,825 crore with a ratio of 2.65 per cent, as compared to Rs 4,578 crore with a ratio of 3.58 per cent. The bank recovered Rs 1,386 crore during the quarter compared to Rs 3,934 crore in January to March quarter in 2021. The bank’s interest income was up by 4 per cent in the fourth quarter ended March to Rs 4,215 crore. For the fourth quarter, the bank’s gross advances stood at Rs 1,55,801 crore as against Rs 1,39,597 crore on March 2021. By the end of fourth quarter, total business of the banks were seen at Rs 4,17,960 crore compared to Rs 379,885 crore as on March 2021. Provision Coverage Ratio also improved to 91.66 per cent as on March 2022, compared to 90.34 per cent as on March 2021.

During the financial year 2021-22, the bank’s net profit more than doubled (106 per cent) from Rs 831 crore in 2020-21 to Rs 1,710 crore in 2021-22. “Our net profit for the year more than doubled on account of good growth in deposits, advances and CASA,” said Partha Pratim Sengupta, managing director and chief executive officer of the bank. The total income during the year dipped to Rs 21,633 crore as against Rs 22,525 crore in previous fiscal.