Indian Overseas Bank records Rs 500cr net profit for Q1 FY24
Indian Overseas Bank (IOB) has reported a net profit of Rs. 500 crores for the quarter ended 30th June 2023 (Q1 FY24), as compared to Rs. 392 crores for the quarter ended 30th June 2022. This commendable financial performance is further emphasized by the bank’s improvement in key financial metrics.
The bank has managed to reduce the Net NPA ratio to 1.44% on 30th June 2023, compared to 2.43% on the same date in the previous year. Simultaneously, the GNPA ratio improved to 7.13% on 30th June 2023, as against 9.12% on 30th June 2022. These improvements were accompanied by a total reduction in NPA of Rs. 989 crores for the quarter ended 30th June 2023 and an increase in Provision Coverage Ratio to 94.03% on 30th June 2023, compared to 91.86% on 30th June 2022.
Total Business for the bank increased to Rs. 4,55,664 crores as of 30th June 2023, up from Rs. 4,23,589 crores on the same date in 2022. Total Deposits showed a similar positive trend, rising to Rs. 2,64,441 crores on 30th June 2023 from Rs. 2,60,045 crores on 30th June 2022. The bank’s CASA ratio improved to 44.14% on 30th June 2023 from 43.07% on 30th June 2022, with total CASA increased to Rs. 1,16,694 crores.
Indian Overseas Bank Q1 FY24 financial performance: Improvement in net profit and reduction in NPAs. Photo courtesy of Nivas10798/Wikimedia Commons.
Furthermore, Gross Advances increased to Rs. 1,91,263 crores as of 30th June 2023, compared to Rs. 1,63,544 crores as of 30th June 2022. The bank’s conscious effort to rebalance the advance portfolio by reducing the stressed sector in the corporate segment has contributed to this growth.
Operating profit as of 30th June 2023 also improved, reaching Rs. 1,345 crores compared to Rs. 1,026 crores for the year ended 30th June 2022. The total income for the quarter ended 30th June 2023 stood at Rs. 6,227 crores, with interest income at Rs. 5,424 crores and non-interest income at Rs. 803 crores. The total expenditure for the quarter increased to Rs. 4,882 crores.
Indian Overseas Bank’s Q1 FY24 results reflect a concerted effort in achieving better financial health through robust growth in key areas and improved NPA management. This performance demonstrates the bank’s strategic approach in handling challenges and adapting to the evolving banking landscape.