IOB Q3 standalone net profit rises 22% to ₹555 cr.

Total business rose to ₹4,32,530 crore against ₹3,95,434 crore

Indian Overseas Bank’s (IOB) standalone net profit for the quarter ended December rose 22% to ₹555 crore due to increase in net interest income and improvement in asset quality.

“For FY23, we had set a target to recover ₹4,500 crore. In the nine-month period, we have recovered ₹3,200 crore,” said MD and CEO Ajay Kumar Srivastava.

While the bank had set for itself a similar recovery target for the next fiscal, it was also eyeing to recover an additional ₹1,000-1,500 crore from technically written-off accounts. The total recovery during the period was ₹460 crore against ₹412 crore, he said.

Net interest income rose to ₹5,056 crore from ₹4,198 crore and non-interest income contracted to ₹950 crore from ₹1,119 crore due to muted income from treasury operations. Net interest margin improved to 3.27% from 2.4%.

Gross non-performing assets (GNPAs) as a percentage of gross advances declined to 8.19% from 10.4%, while that of net NPAs dropped to 2.43% from 2.63%. Provision Coverage Ratio was healthy at 91.34% (92.33%), he said.

Total business rose to ₹4,32,530 crore against ₹3,95,434 crore, of which deposits were ₹2,57,480 crore and advances ₹1,75,050 crore.