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Informist, Friday, Jul. 18, 2025

 

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--Indian Overseas Bk Apr-Jun net profit INR 11.11 bln 
--Indian Overseas Bk gross NPA ratio 1.97% as on Jun 30 vs 2.14% quarter ago 
--Indian Overseas Bk Apr-Jun net profit INR 11.11 bln vs INR 6.33 bln yr ago 
--Indian Overseas Bk net NPA ratio 0.32% as on Jun 30 vs 0.37% quarter ago 
--Indian Overseas Bk Basel-III capital adequacy ratio 18.28% as on Jun 30 
--Indian Overseas Bk Apr-Jun total income INR 88.7 bln vs INR 75.7 bln yr ago 
--Indian Overseas Bk Apr-Jun provisions INR 8.44 bln vs INR 9.38 bln yr ago 
--Indian Overseas Bk provision coverage ratio 97.47% as on Jun 30 
--Indian Overseas Bk Apr-Jun NPA provisions INR 1.78 bln vs INR 1.64 bln 
--Indian Overseas Bk Apr-Jun net interest income INR 27.46 bln, up 12.5% YoY 
--Indian Overseas Bk Apr-Jun net interest margin 3.04% vs 3.06% year ago 
--Indian Overseas Bk CASA ratio 43.78% as on Jun 30 vs 42.17% year ago 
--Indian Overseas Bk advances INR 2.62 tln as on Jun 30, up 14.1% YoY 
--Indian Overseas Bk total deposits INR 3.31 tln as on Jun 30, up 10.8% YoY 
--Indian Overseas Bk retail loans at INR 708.03 bln on Jun 30, up 38.8% YoY 
--Indian Overseas Bk Agri loans at INR 765.48 bln on Jun 30, up 25.9% on yr 
--Indian Overseas Bk corporate, other loans INR 514.5 bln Jun 30, dn 11% YoY 
--Indian Overseas Bk Apr-Jun cost of funds at 5.22% vs 5.29% qtr ago 
--Indian Overseas Bk Apr-Jun slippages INR 2.54 bln vs INR 2.77 bln year ago 
--Indian Overseas Bk Apr-Jun write off INR 2.38 bln vs INR 2.51 bln year ago 
 

 

By Sourabh Kumar

 

MUMBAI – A sharp rise in other income led to an over 70% year-on-year jump in Indian Overseas Bank's net profit for the June quarter. A fall in the state-owned bank's provisions and contingencies also lifted the bottom line. Sequentially, the Chennai-based bank's provisions fell much more, aiding its quarter-on-quarter net profit growth.

 

Indian Overseas Bank's net profit shot up 75.6% to INR 11.11 billion in the June quarter from INR 6.33 billion in the corresponding quarter of last year. In the previous quarter, the net profit was INR 10.51 billion. The bank's other income for the quarter rose around 43% on year to INR 14.81 billion. However, sequentially, the other income fell 6.3%.

 

The bank's total income for the June quarter rose to INR 88.66 billion, from INR 75.68 billion a year ago. However, the total income was down nearly 4% sequentially. This was mainly because there was no income under the 'others' head of interest income in the June quarter as against INR 5.17 billion in the previous quarter. Therefore, the interest income of the bank rose 13% on year but fell a little over 3% on quarter to INR 73.86 billion in Apr-Jun.

 

Indian Overseas Bank's provisions and contingencies fell 10% year-on-year to INR 8.44 billion in the June quarter. Sequentially, the fall in provisions was much more at 20%. The bank's Basel III capital adequacy ratio was 18.28% as on Jun. 30, down from 19.74% in the previous quarter but up from 17.82% a year ago.

 

In terms of asset quality, the bank's gross non-performing assets ratio was 1.97% as on Jun. 30, down 92 basis points from last year. The bank's net non-performing assets ratio fell 19 bps on year to 0.32%. The bank's net non-performing assets fell 29.2% on year to INR 8.16 billion and the gross non-performing assets fell 22% on year to INR 51.78 billion. Indian Overseas Bank made provisions of INR 1.78 billion in the June quarter for non-performing assets, down around 11% on quarter but up nearly 9% from last year.

 

Indian Overseas Bank reported INR 2.54 billion of fresh slippages in the June quarter. The slippages were slightly lower than INR 2.77 billion slippages in the corresponding quarter of last year and sharply lower from the previous quarter's INR 27.56 billion. The bank wrote off INR 2.38 billion in the June quarter. This was only slightly lower than last year's INR 2.51 billion and sharply down from the previous quarter's INR 30.43 billion. Upgradation of accounts was sharply lower on quarter at INR 310 million in the June quarter. Cash recoveries fell to INR 1.80 billion in the June quarter, from INR 2.63 billion in the previous quarter.

 

The bank reported a provision coverage ratio of 97.47% as on Jun. 30, which rose from the previous quarter's 97.30% and last year's 96.96%. The bank's net interest income for the June quarter increased 12.5% on year to INR 27.46 billion. The net interest margin of the bank fell 2 bps on year to 3.04% in Apr-Jun. The bank's return on assets increased 44 bps on year to 1.14% in the June quarter.

 

Cost of funds of the bank decreased to 5.22% in the June quarter from 5.29% a quarter ago. However, it was higher than the last year's 5.03%. The state-owned bank's cost of deposits also declined to 5.10% in Apr-Jun from 5.17% in the March quarter. The bank's domestic yield on advances increased 7 bps on quarter to 9.18% in the June quarter.

 

The bank's business increased 12.2% on year to INR 5.93 trillion in the June quarter. Advances rose 14.1% on year to INR 2.62 trillion in the quarter ended June. Agricultural loans, which constituted majority of the bank's total domestic advances, rose nearly 26% on year to INR 765.48 billion. The rise was sharpest in the retail segment, where loans increased nearly 39% on year to INR 708.03 billion. Loans to corporate and others segment declined 11.3% on year to INR 514.50 billion in the June quarter. Overseas loans increased 4.2% to INR 183.73 billion in the June quarter.

 

The bank's non-performing assets ratio was the highest at 7.3% in the overseas loans segment. This was followed by loans to domestic micro, small, and medium enterprises, non-performing assets ratio of which was 2.62%. The non-performing assets ratio was lowest for the corporate segment at 0.4%. The retail, agricultural, and micro, small, and medium enterprises, constituted 78.92% of the total domestic advances, up 622 bps on year and 114 bps on quarter.

 

The bank's total deposits increased 10.8% on year to INR 3.31 trillion in the June quarter. The current account savings account deposits increased 15% on year to INR 1.45 trillion in the quarter. The global current account savings account ratio increased 161 bps from last year to 43.78% as on Jun. 30. Term deposits increased 7.7% on year to INR 1.86 trillion in the June quarter. The bank's domestic credit-deposit ratio was 75.75%, up 288 bps on year but down 121 bps from the previous quarter.

 

At 1514 IST, shares of Indian Overseas Bank were flat at INR 39.87 on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Edited by Ashish Shirke

 

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