Indian Overseas Bank Q3 profit jumps 30 per cent to Rs 723 crore on improvement in core income

Indian Overseas Bank (IOB) announced on Wednesday that its net profit for the December period of 2023–2024 increased by 30% to Rs 723 crore, mostly due to an upsurge in core revenue and a decrease in bad loans. A year earlier in the same quarter, the Chennai-based lender had made a net profit of Rs 555 crore. In December 2022, the bank’s net profit was Rs 1,540 crore, but it climbed to Rs 1,780 crore.

IOB reports that total income for the quarter was Rs 7,437 crore, up from Rs 6,006 crore during the same period a year prior. For the quarter ending in December 2022, interest income increased as well, reaching Rs 6,176 crore as opposed to Rs 5,056 crore. In comparison to Rs 460 crore in the third quarter of the last fiscal year, the bank recovered a total of Rs 327 crore in cash during this time frame.

The third quarter of FY24 saw a 0.62 percent net NPA ratio, down from 2.43 percent in the same quarter of the previous fiscal year. In all, NPAs were Rs 1,303 crore as of December 2022, down from Rs 4,000 crore. IOB’s managing director and CEO, Ajay Kumar Srivastava, asserts that the company will continue to reduce its nonperforming assets (NPA) since it is tightly controlling its lapses and quality of assets. The bank projects a 13–14% increase in credit throughout the next fiscal year.

The provision coverage rate for IOB was 96.85% in December 2022 as opposed to 91.34 percent the previous year. For the quarter ending in December 2023, interest income was Rs 6,176 crore, compared to Rs 5,056 crore for the period ending in December 2022. In the third quarter of FY24, the net interest rate was 3.12%, down from 3.27 percent in the third quarter of FY2.

The bank’s overall revenue climbed from Rs 4.33 trillion in December 2022 to Rs 4.94 trillion in December 2023. In Q3 FY24, total deposits increased to Rs 2.78 trillion from Rs 2.57 trillion as of December 2022. CASA went from Rs 1.15 trillion at 44.5 percent in December 2022 to Rs 1.21 trillion at 43.49 percent in December 2023.