Earnings Review
Indian Overseas Bk Jul-Sept PAT rises 24% YoY on lower NPAs
This story was originally published at 19:05 IST on 17 October 2024
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--Indian Overseas Bk Jul-Sept net profit INR 7.77 bln
--Indian Overseas Bk Jul-Sept net profit INR 7.77 bln vs INR 6.25 bln yr ago
--Indian Overseas Bk Apr-Sept net profit INR 14.1 bln vs INR 11.2 bln yr ago
--Indian Overseas Bk Jul-Sept total income INR 84.84 bln vs INR 69.35 bln
--Indian Overseas Bk Apr-Sept total income INR 160.52 bln vs INR 131.63 bln
--Indian Overseas Bk Jul-Sept provisions INR 11.46 bln vs INR 10.44 bln
--Indian Overseas Bk Jul-Sept NPA provisions INR 705.4 mln vs INR 11.21 bln
--Indian Overseas Bk gross NPA ratio 2.72% as on Sept. 30 vs 2.89% qtr ago
--Indian Overseas Bk net NPA ratio 0.47% as on Sept 30 vs 0.51% qtr ago
--Indian Overseas Bk Basel III capital adequacy ratio 17.45% as on Sept 30
--Indian Overseas Bk provision coverage ratio 97.06% as on Sept 30
By Sourabh Kumar and Richard Fargose
MUMBAI – Indian Overseas Bank's net profit rose 24.4% on year to INR 7.77 billion in the quarter ended September due to improvement in asset quality and a drastic reduction in provision for non-performing assets. Sequentially, the bottom line rose 22.8% during the quarter.
While provisions and contingencies rose 9.8% on year to INR 11.46 billion, the provisions for bad loans fell 93.7% to INR 705 million. The gross non-performing asset ratio of the state-owned bank declined to 2.72% as on Sept. 30 from 4.74% a year ago and 2.89% a quarter ago. The net NPA ratio fell to 0.47% as on Sept. 30 from 0.68% a year ago and 0.51% a quarter ago.
The total recovery during the quarter stood at INR 14.82 billion rupees, while recovery from written-off accounts was INR 11.18 billion in Jul-Sept. The provision coverage ratio of the bank improved to 97.06% as on Sept. 30 from 96.96% a quarter ago.
The Chennai-based bank's total income rose 22.3% on year to INR 84.84 billion in Jul-Sept. Within the total income, interest income grew by 17.7% on year to INR 68.51 billion and non-interest income increased 46.6% to INR 16.33 billion during the quarter under review.
The bank's total business rose 12.2% on year to INR 5.41 trillion as on Sept. 30 with total deposits growing 13.8% to INR 3.11 trillion and gross advances increasing 10.2% to INR 2.30 trillion. The credit-to-deposit ratio of the bank declined to 74.09% as on Sept. 30 from 77.04% a quarter ago.
Low-cost current account savings account deposits rose 10.6% on year to INR 1.32 trillion, with a CASA ratio of 42.44% as of Sept. 30, the bank said.
The bank's net interest margin rose 2 basis points on quarter to 3.08% in Jul-Sept from 3.06% a quarter ago, and the cost-to-income ratio fell to 48.97% from 51.76% in Apr-Jun.
In the first half of the financial year, Indian Overseas Bank's net profit rose 25.3% on year to INR 14.10 billion, while total income increased 22.0% to INR 160.52 billion. Total expenditure, excluding provisions and contingencies, rose 20.8% to INR 122.48 billion in Apr-Sept.
On Thursday, Indian Overseas Bank's shares ended at INR 55.97 on the National Stock Exchange, up 2.5% from the previous close. End
Edited by Saji George Titus
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