IOB Reports a 30% Increase in Q3 Profit

State-owned Indian Overseas Bank (IOB) has announced a significant 30% rise in its net profit, reaching Rs 723 crore for the December quarter of 2023-24. This impressive growth is attributed to an improvement in core income and a reduction in bad loans.

The Chennai-based lender had earned a net profit of Rs 555 crore in the same quarter a year ago. Operating profit also saw an improvement, rising to Rs 1,780 crore from Rs 1,540 crore in December 2022. Total income increased to Rs 7,437 crore during the quarter under review, up from Rs 6,006 crore in the same period last year.

Interest income rose to Rs 6,176 crore over Rs 5,056 crore for the quarter ended December 2022. On the asset quality front, the bank's gross Non-Performing Assets (NPAs) declined to 3.90% of gross loans by the end of December 2023 from 8.19% a year ago. Similarly, net NPAs or bad loans came down to 0.62% as compared to 2.43% in FY22. As a result, provisions for bad loans declined to Rs 367 crore from Rs 711 crore a year ago.

The bank's Provision Coverage Ratio stood at 96.85% at the end of the third quarter, up from 91.34% as on December 31, 2022. Its Capital Adequacy Ratio improved to 16.80% from 15.16% at the end of the December quarter of FY22. Current Account Savings Account (CASA) as a percentage of total deposits declined marginally to 43.49%.