Indian Overseas Bank Q2 results: Net profit rises 25% to Rs 627 crore

State-run Indian Overseas Bank (IOB) has posted a 25 per cent rise in consolidated net profit during the second quarter of financial year 23-24 (FY24) to Rs 627.18 crore, up from Rs 500.21 crore during the July to September quarter of financial year 22-23 (FY23), owing to a rise in total income and improved asset quality.

During the period under review, the bank’s total income rose 19 per cent to Rs 6,941.5 crore compared to Rs 5,854 crore during the same quarter last financial year. By the end of September, the bank’s gross non-performing assets (GNPA) improved to Rs 9,893 crore with a ratio of 4.74 per cent, as against Rs 14,726 crore with a ratio of 8.53 per cent as on September 2022, showing a decline both in quantum and as a percentage of gross advances.

Net NPA as of September 2023 stood at Rs 1,364 crore with a ratio of 0.68 per cent, as against Rs 4,148 crore with a ratio of 2.56 per cent as of September 2022, thus reducing net NPA by Rs 2,784 crore in absolute terms. Provision Coverage Ratio stood at 96.76 per cent during the period, as against 90.94 per cent as of September 2022. The bank has made required provisioning in advances in specific accounts to improve net NPA. Interest income stood at Rs 5,821 crore for the quarter, as against Rs 4,718 crore for the quarter ended September 2022. Net Interest Margin stood at 3.12 per cent for the quarter, as against 2.79 per cent during the second quarter of FY23.

The Chennai-based bank’s total business increased to Rs 4.82 trillion by the end of September this year, as against Rs 4.34 trillion by the end of September 2022, up 11 per cent compared to the same time last financial year. Its total deposits were also seen up by 5 per cent to Rs 2.73 trillion compared to Rs 2.61 trillion last financial year. Current Account Savings Account (CASA) of the bank increased to Rs 1,19,206 crore at 43.65 per cent as of September 2023, against Rs 1,11,924 crore at 42.76 per cent as of September 2022. Gross Advances stood at Rs 2.09 trillion as of September 2023, up 21 per cent from Rs 1.73 trillion last financial year. Operating profit stood at Rs 1,677 crore as of September 2023, as against Rs 1,494 crore as of September 2022.