Chennai, July 21: Indian Overseas Bank (IOB) has reported a robust 49.3% year-on-year growth in net profit at 1,659 crore for June quarter.
The surge in profits has been boosted by a huge 34.3% rise in core net interest income as its asset quality improved significantly coupled with a massive jump in recoveries.
A healthy 34.2% spurt in the core net interest to `3,688 crore helped the bank report a 49.32% growth in net income at Rs 1,659 crore, IOB said in a statement on Monday.
Another reason or jump in bottom line was healthy domestic net interest margin, which rose to 3.48%3, up 31 bps from the year-ago period, while global margin increased to 3.37%, up 13 bps from the year-ago quarter, the bank said, adding all this had the total business of the lender increasing 17.72 % to 6.98 trillion.
Of this deposits consisted `3.76 lakh crore, up 13.72% and advances at `3.22 lakh crore, up 22.75%.
Of total deposits, domestic Casa rose to 41.45% and global Casa stood at 41.05%. While total credit increased 22.75%, led by a 35.8% jump in the RAM book 36.49% by in retail, 46.84% in agri and 16.15% growth in MSME.
The bank’’s NPA recovery stood at `654 crore during the quarter, which is 3.35x the quarterly slippages. Improved asset quality was driven by 15 bps reduction in credit cost at 0.29% and a 7 bps improvement in fresh slippages which printed in at 0.06%.
The bank saw further improvement in other key metrics such as the capital adequacy, returns on assets and equity among others.
While return on equity increased to 22.69% from 19%, registering a 369 bps rise, return on assets improved to 1.41%, up 27 bps from 1.14%.
Similarly, provision coverage ratio increased by 20 pbs to 97.67 with strong capital ratios of core capital increasing by 108 bps to 19.36% of which tier I rose to 16.88%. (BVI)
