Indian Overseas Bank advanced 3.15% to Rs 11.79 after the bank posted net profit of Rs 120.69 crore in Q1 June 2020 as compared with net loss of Rs 342.08 crore in Q1 June 2019.
Total income rose 4.5% to Rs 5,233.63 crore in Q1 June 2020 over Q1 June 2019. Pre-tax profit stood at Rs 124.63 crore in Q1 June 2020 compared with pre-tax loss of Rs 329.66 crore in Q1 June 2019. The result was declared post trading hours yesterday, 20 August 2020.
The bank's gross non-performing assets (NPAs) stood at Rs 18,290.84 crore as on 30 June 2020 as against Rs 19,912.70 crore as on 31 March 2020 and Rs 33,262 crore as on 30 June 2019. The ratio of gross NPAs to gross advances stood at 13.90% as on 30 June 2020 as against 14.78% as on 31 March 2020 and 22.53% as on 30 June 2019. The ratio of net NPAs to net advances stood at 5.10% as on 30 June 2020 as against 5.44% as on 31 March 2020 and 11.04% as on 30 June 2019.
The bank's provisions and contingencies dropped 16.26% to Rs 969.52 crore in Q1 FY21 over Rs 1,157.82 crore in Q1FY20. Provision Coverage Ratio (PCR) improved to 87.97% as on 30 June 2020 as against 72.24% as on 30 June 2019.
Total business was at Rs 4,40,609 crore as on 30 June 2020 from Rs 4,37,269 crore as on 30 June 2019. Total deposits increased to Rs 2,25,546 crore as on 30 June 2020 as compared to Rs 2,21,171 crore as on 30 June 2019.
Current Account-Savings Account (CASA) ratio of the bank improved to 41.02% as on 30 June 2020 as against 38.05% as on 30 June 2019. Total CASA has increased to Rs 92,514 crore as on 30 June 2019 from Rs 84,145 crore as on 30 June 2019.
Gross advances stood at Rs 1,31,565 crore as on 30 June 2020 as against Rs 1,47,606 crore as on 30 June 2019. The bank has evolved a policy of not taking fresh exposures in stressed sectors, below hurdle rated accounts and BB and below rated accounts. The bank has also exited from accounts in the stressed sectors to improve the quality of asset. Operating profit for quarter ended 30 June 2020 stood at Rs 1,094 crore as against Rs 828.15 crore for the quarter ended 30 June 2020 due to increase in interest on investments and reduction in interest expenditure.
Interest income stood at Rs 4302 crore in Q1 June 2020 as against Rs 4336.39 crore in Q1 June 2019, mainly due to decrease in MCLR. Net Interest Margin (NIM) stood at 2.08% in Q1 FY20 as compared to 2.01% in Q1 FY19.
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The company said that the continued lockdown has resulted in significant decline in global and local economic activities. The situation continues to be uncertain and the state-owned bank is closely monitoring the situation. Despite these conditions, there would not be significant impact on the bank's financial statements, it said.
The Government of India held 95.84% stake in Indian Overseas Bank as on 30 June 2020.
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