Indian Overseas Bank (IOB) continues its profitable growth journey as the Chennai headquartered public sector bank reported a net profit of ₹327 crore for the quarter ended June 30, 2021 against a net profit of ₹121 crore in the year-ago quarter, helped by higher operating profit and lower provisions.

The bank’s operating profit grew to ₹1,202 crore in June 2021 quarter as against ₹1,094 crore in the year-ago quarter, on account of reduction in interest expenditure and higher non-interest income, according to a statement.

Total income stood at ₹5,155 crore as compared to 5,234 crore. Interest income fell to ₹4,063 crore as against ₹4,302 crore in Q1 of last fiscal, while non-interest income was higher at ₹1,092 crore (₹932 crore).

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Provisions and contingencies were lower at ₹868 crore as compared to ₹970 crore.

Gross NPA declined to ₹15,952 crore as of June 2021 quarter when compared with ₹18,291 crore in June 2020 quarter and ₹16,323 crore in March 2021 quarter. Gross NPA ratio fell to 11.48 per cent from 13.90 per cent in the year-ago quarter and 11.69 in the year-ago quarter.

Net NPA ratio stood at 3.15 per cent, down from 5.10 per cent in Q1 of last fiscal and 3.58 per cent in Q4 of FY20. Its provision coverage ratio improved to 91.56 per cent from 87.97 per cent in the June 2020 quarter and 90.34 per cent in March 2021 quarter.

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Deposits increased to ₹242,941 crore in Q1 of this fiscal when compared with ₹225,546 crore in the year-ago quarter, while gross advances stood at ₹138,944 crore as compared to ₹131,565 crore.

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