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

NEW DELHI: State-owned Indian Overseas Bank (IOB) on Wednesday reported 30% rise in net profit at Rs 723 crore for December quarter 2023-24, on the back of improvement in core income and reduction in bad loans.

The Chennai-based lender had earned a net profit of Rs 555 crore in the same quarter a year ago.

Operating profit of the bank improved to Rs 1,780 crore as against Rs 1,540 crore in December 2022.

Total income increased to Rs 7,437 crore during the quarter under review from Rs 6,006 crore in the same period last year, IOB said in a regulatory filing.

Interest income also rose to Rs 6,176 crore over Rs 5,056 crore for the quarter ended December 2022.

During the quarter, the bank had done total cash recovery of Rs 327 crore as against Rs 460 crore in the third quarter of the previous fiscal.

On the asset quality front, the bank's gross Non-Performing Assets (NPAs) declined to 3.90% of gross loans by the end of December 2023 from 8.19% a year ago.

Similarly, net NPAs or bad loans came down to 0.62% as compared to 2.43% in FY22.

As a result, provisions for bad loans declined to Rs 367 crore from Rs 711 crore a year ago.

The bank's Provision Coverage Ratio stood at 96.85% at the end of third quarter as against 91.34% as on December 31, 2022.

Its Capital Adequacy Ratio improved to 16.80% from 15.16% at the end of the December quarter of FY22.

Current Account Savings Account (CASA) as percentage of total deposits declined marginally to 43.49%.