 "Vacuum at top in IOB")
Indian Overseas Bank (IOB) on Wednesday reported a net profit of Rs 723 crore in the third quarter of Financial Year 2023-24 (Q3 FY24), up 30 per cent compared to Rs 555 crore in the same period in FY23. The state-run lender attributed growth to rise in income and improved asset quality.
The bank’s total income was up by 24 per cent to Rs 7,437 crore in Q3 FY24 compared to Rs 6,006 crore a year ago. Gross non-performing assets (GNPA) improved to Rs 8,441 crore with a ratio of 3.9 per cent, as against Rs 14,333 crore with a ratio of 8.19 per cent in December 2022.
Net NPA in Q3 FY24 was seen at a ratio of 0.62 per cent, compared to 2.43 per cent during the same quarter last fiscal. In absolute terms, net NPA stood at Rs 1,303 crore against Rs 4,000 crore in December 2022. "Our net NPA will further come down. We have a tight grip on our slippages and control on our asset quality," said Ajay Kumar Srivastava, managing director and chief executive officer of IOB. The bank expects a 13-14 per cent credit growth in the next financial year.
The Chennai-based bank’s provision coverage ratio recorded at 96.85 per cent as against 91.34 per cent in December 2022. Interest income stood at Rs. 6,176 crore for the quarter ended December 2023, as against Rs 5,056 crore for the quarter ended December 2022. Net interest margin in Q3 FY24 quarter stood at 3.12 per cent compared to 3.27 per cent in Q3 FY2.
The bank’s total business increased to Rs 4.94 trillion as on December 2023 from Rs 4.33 trillion as on December 2022. Total deposits improved to Rs 2.78 trillion in Q3 FY24, as against Rs 2.57 trillion as on December 2022. CASA increased to Rs. 1.21 trillion at 43.49 per cent as on December 2023 compared to Rs 1.15 trillion at 44.5 per cent as on December 2022.
