IOB net up 19% to Rs 656 cr in Q4FY23, income rises 16% to Rs 5,271 cr

Improvement in bad loan situation; marginal rise in low-cost deposits as percentage of overall deposits

State-run Indian Overseas Bank (IOB) has posted a 19 per cent rise in net profit for the fourth quarter of 2022-23 to Rs 656 crore, from Rs 552 crore during the same quarter a year ago.

During the period under review, the bank’s total income rose 16 per cent from Rs 5,721 crore in Q4 of FY22 to Rs 6,631 crore in Q4FY23. By March 31 this year, its gross non-performing assets (GNPA) were down by 8 per cent to Rs 14,072 crore from Rs 15,299 crore a uear ago. GNPA ratios improved to 9.44 per cent from 9.82 per cent during the end of the same quarter in 2021-22.

 

Net NPAs during the quarter dipped 15 per cent to Rs 3,266 per cent from Rs 3,825 crore during the same period in 2022. The net NPA ratio also dipped to 1.83 per cent during the period under review from 2.65 per cent last year. The bank’s operating profit too increased by 17 per cent to Rs 1,887 crore from Rs 1,614 crore last year.

For the entire financial year 2022-23, the bank’s net profit increased by 23 per cent to Rs 2,104 crore from Rs 1,709 crore in 2021-22. Its operating profit increased marginally to Rs 5,947 crore during the year, from Rs 5,763 crore the previous year.

Gross advances for the period under review stood at Rs 1.89 trillion as against Rs 1.56 trillion as on March 2022. CASA of the bank stood at Rs 1,14,123 crore or 43.74 per cent of overall deposits as on March 31 this year. This was against Rs 1,13,877 crore (43.44 per cent of overall deposits) on March 31, 2022. During the year, its provision coverage ratio stood at 92.63 per cent compared to 91.66 per cent by the end of March 2022. By the end of March quarter, total deposits stood at Rs 260,883 crore compared to Rs 262,159 crore last year.