Analyst Concall
Indian Overseas Bank to focus on CASA, retail deposits
This story was originally published at 20:28 IST on 20 January 2025
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MUMBAI – Indian Overseas Bank plans to focus more on raising low-cost current account savings account deposits and retail deposits to reduce the cost of deposits, the bank's management said at a post-earnings analyst call on Monday.
The cost of deposits of the bank was at 5.08% in Oct-Dec, down from 5.15% a quarter ago. However, the cost of deposits was higher than 4.95% in Apr-Jun.
The total deposits of the bank fell 1.8% from a quarter ago to INR 3.05 trillion as of Dec. 31 due to a fall in term deposits. The term deposits declined 3.4% to 1.73 trillion. The CASA ratio of the bank was at 43.37% as on Dec. 31, up from 42.44% a quarter ago.
Indian Overseas Bank's net profit rose 20.9% on year to INR 8.74 billion in Oct-Dec due to a rise in interest income and a fall in operating expenses of the bank. Sequentially, the bottom line of the bank rose 12.4%. The net interest income of the Chennai-based bank rose 16.3% on year to INR 27.89 billion, while net interest margin rose 21 basis points on year to 3.33%.
On Monday, shares of the bank closed 3.7% higher at INR 52.52 On the National Stock Exchange. End
Reported by Kshipra Petkar
Edited by Saji George Titus
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