Indian Overseas Bank Q3 results: Net profit rises 21% to Rs 874 crore

The Chennai-based bank posted a total income of Rs 8,409 crore during the quarter under review versus Rs 7,437 crore in the same period last year

Chennai-based Indian Overseas Bank (IOB) reported a 21 per cent increase in net profit for the third quarter of financial year 2024-25 (Q3FY25), rising to Rs 874 crore from Rs 723 crore in the corresponding quarter of the previous year. The growth was attributed to a decline in bad loans.

The bank’s total income grew 13 per cent year-on-year (Y-o-Y) to Rs 8,409 crore during the quarter under review, compared to Rs 7,437 crore in the same period last year.

Gross non-performing assets (GNPA) improved significantly, declining to Rs 6,249 crore with a GNPA ratio of 2.55 per cent, compared to Rs 9,893 crore and a ratio of 3.9 per cent in December 2023. The net non-performing assets (NNPA) ratio reduced to 0.42 per cent from 0.62 per cent in the same quarter last year, with net NPA in absolute terms dropping to Rs 976 crore from Rs 1,303 crore.

 

The bank’s provision coverage ratio (PCR) stood at 97.07 per cent, slightly up from 96.85 per cent in December 2023. Interest income grew by 15.16 per cent Y-o-Y to Rs 7,112 crore in Q3FY25 from Rs 6,176 crore in Q3FY24. Net interest income (NII) rose 16.30 per cent Y-o-Y to Rs 2,789 crore in Q3FY25 from Rs 2,398 crore in Q3FY24. The net interest margin (NIM) for the quarter stood at 3.33 per cent.

IOB’s total business increased to Rs 5.42 trillion as of December 2024, up from Rs 4.94 trillion as of December 2023. Total deposits grew to Rs 3.05 trillion in Q3FY25, compared to Rs 2.78 trillion in the same quarter last year.

The bank’s current account and savings account (Casa) deposits increased to Rs 1.32 trillion, reflecting a Y-o-Y growth of 9.45 per cent. The CASA ratio stood at 43.37 per cent for the quarter ended December 2024.