Indian Overseas Bank reports net profit of Rs 808cr for Q4 FY 2023-2024
Indian Overseas Bank (IOB), one of India’s leading public sector banks, has reported a significant financial performance for the fiscal year 2023-2024. Demonstrating robust growth, IOB recorded its highest-ever net profit of ₹808 crores for the fourth quarter and ₹2,656 crores for the entire fiscal year. This performance marks a notable improvement in both operating and net profit, with the latter experiencing a 26.54% increase compared to the previous year.
Key Performance Indicators:
– NPA Management: The bank has shown exceptional control over slippages, which stood at ₹1,517 crores, representing 0.87% of performing advances. The gross non-performing assets (NPA) improved significantly, more than halving to 3.10% from 7.44% in the previous year.
– Interest and Non-Interest Income: Interest income for Q4 reached ₹6,629 crores, up from ₹5,192 crores, driven by an improved Net Interest Margin of 3.28%. Non-interest income also saw a considerable rise to ₹2,477 crores for the year.
The total business for IOB surged to ₹5,04,923 crores as of March 31, 2024, propelled by an impressive growth in the Current Account Savings Account (CASA) by 43.90%. The bank’s proactive measures in expanding its branch network, with plans to open 88 new branches, signify its commitment to enhancing accessibility and service to its customers.
Expansion and Innovation:
IOB continues to focus on customer-centric initiatives, offering one of the highest interest rates on Rupee Retail Term Deposits for the 444 Days bucket. The introduction of innovative products such as the IOB Freedom Savings and Current Account and the launch of the Green Deposit Scheme highlight the bank’s dedication to sustainability and customer service.
In its journey towards digital transformation, IOB has launched three new RuPay Credit Card variants and pioneered the online Real-Time Allotment of Safe Deposit Lockers with Digital Documents Execution (DDE), enhancing customer convenience and flexibility. Furthermore, the bank initiated savings account portability and UPI QR Code-based Interoperable Cardless Cash Withdrawal (ICCW) in its ATM portfolio.
Indian Overseas Bank’s record performance for FY 2023-2024 underscores its robust financial management and strategic initiatives that align with modern banking needs and sustainability. By focusing on digital innovation and customer-centric products, IOB is well-positioned to continue its growth trajectory and strengthen its market presence.