Comments
Indian Overseas Bank (IOB) has reported a 25 per cent increase in its net profit at ₹625 crore in Q1 of this fiscal when compared with ₹501 crore in the year-ago quarter, helped by higher interest income amid higher provisions.
Its operating profit grew 12 per cent at ₹1677 crore (₹1494 crore in Q2 of FY23), on the back of a 20.5 per cent rise in net interest income at ₹2346 crore (₹1947 crore).
While interest income grew 23 per cent at ₹5821 crore (₹4718 crore), non-interest income was marginally lower at ₹1114 crore (₹1135 crore). Provisions for NPA were higher at ₹1120 crore (₹627 crore), as the bank had made some accelerated provisioning for some accounts.
Fresh slippages were at ₹321 crore, but total recoveries were higher at ₹1069 crore, of which about 40 per cent came from written-off accounts.
“Every quarter we have been recovering 40-45 per cent from written-off accounts and that adds to the bottom line. Slippages were reported only in the RAM (retail, agriculture and MSME) sector. No corporate account slipped in the past two quarters,” said Ajay Kumar Srivastava, MD and CEO of the IOB.
The slippage ratio was 0.18 per cent in the September 2023 quarter.
Gross NPA ratio
The gross NPA ratio fell to 4.74 per cent in Q2 of this fiscal from 8.53 per cent in the year-ago quarter and 7.13 per cent in the preceding quarter. Net NPA stood at 0.75 per cent as against 2.56 per cent in Q2 of FY23 and 0.65 per cent in Q1 of this fiscal. “We maintain net NPA below 1 per cent and that is the best in the industry,” he said.
Gross advances increased to ₹ 208,913 crore as of September 30, 2023 (₹172,713 crore in Q2 of FY23). Total deposits increased to ₹273,093 crore (₹261,728 crore).
The Bank’s CASA ratio improved to 43.65 per cent in Q2 of this fiscal from 42.76 per cent in the year-ago quarter.
Srivastava said IOB would stay focused on its two-pronged strategy under which it has been boosting CASA share and retail term deposits.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.