Indian Overseas Bank Q2 results: Net profit rises 24% to Rs 777 crore

State-owned Indian Overseas Bank (IOB) on Thursday posted a 24 per cent surge in net profit to Rs 777 crore in the second quarter ended September 2024.

The lender had earned a net profit of Rs 625 crore in the same quarter a year ago.

Its total income increased to Rs 8,484 crore during the quarter under review against Rs 6,935 crore in the same period last year, IOB said in a regulatory filing.

The bank earned an interest income of Rs 6,851 crore during the quarter compared to Rs 5,821 crore in the year-ago period.

With regard to asset quality, the bank was able to reduce gross non-performing assets (NPAs) to 2.72 per cent of the gross loans by the end of September 2024 from 4.74 per cent a year ago.

Similarly, net NPAs or bad loans came down to 0.47 per cent from 0.68 per cent at the end of the second quarter of the previous fiscal.

As a result, provisions for bad loans declined significantly to Rs 71 crore compared to Rs 1,121 crore earmarked in the same quarter of FY24.

Provision Coverage Ratio of the bank stood at 97.06 per cent as of September 30, 2024.

Capital Adequacy Ratio increased to 17.45 per cent compared to 17 per cent at the end of the second quarter of last fiscal.