IOB Q2 net rises 24% to ₹777 crore, eyes ₹1,000 cr. profit by Q4
The Hindu
Indian Overseas Bank (IOB) reports 24% rise in net profit to ₹777 crore, aims for ₹1,000 crore by 2025.
Indian Overseas Bank (IOB) reported standalone net profit for the quarter ended September rose 24% to ₹777 crore from the year-earlier period due to improvement in all financial parameters.
“Having achieved a net profit of ₹777 crore for this quarter, we are confident of touching ₹1,000 crore by March 2025,” MD & CEO Ajay Kumar Srivastava said in a media interaction.
Admitting that garnering CASA deposits had been tough for banks in recent times, he said the CASA ratio stood at 42% and going forward the bank would strive to maintain it at the same level despite challenges.
Interest income rose to ₹6,851 crore from ₹5,821 crore. Non-interest income grew 47% to ₹1,633 crore. Net interest income increased 8% to ₹2,537 crore. There was a slight dip in net interest margin (NIM) by 4bps to 3.08% due to increase in cost of deposits. However, IOB was able to maintain NIM to a larger extent, he said.
Gross non-performing assets (GNPA) declined to 2.72% from 4.74%, while net NPA stood at 0.47% against 0.68%. Provision coverage ratio improved to 97.06% from 96.76%. Capital adequacy of the bank rose to 17.45% from 17%.
Total recovery was ₹1,482 crore, of which ₹1,118 crore came from technically written off accounts, while fresh slippages was ₹251 crore (₹321 crore). IOB has set a cash recovery target of ₹5,500 crore (₹4,500 crore) for FY25.
Total business increased to ₹5,40,801 crore from ₹4,82,006 crore, of which total deposits accounted for ₹3,10,652 crore. Current account savings account deposits increased to ₹1,31,856 crore, accounting for 42% of total deposits.
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