Indian Overseas Bank recorded a 28.4 per cent growth in net profit to Rs 500.35 crore in the June quarter of FY 23-24, up from Rs 392.3 crore the previous year.
The NPA of the Chennai-based bank was reduced slightly. IOB’s gross NPA was 7.13 per cent in the period under review, while its net NPA was 1.44 per cent. Its NII increased by 32.4 per cent to Rs 2,322.5 crore.
In contrast to a positive profit performance, IOB’s total income decreased by approximately 6 per cent QoQ to Rs 622.7 crore in Q1FY24 from Rs 662.642 in the previous quarter. In terms of annual performance, total revenue climbed by 24 per cent YoY.
The Chennai-based government bank has made significant progress in lowering nonperforming assets.The bank’s NPA fell to 1.83 per cent in the prior quarter. In the most recent quarter, it fell further to 1.44 per cent. In comparison, IOB’s net NPA was 2.43 per cent a year earlier. The company’s capital adequacy ratio increased to 16.56 per cent in Q1FY24 from 14.79 per cent the previous year.
The bank’s board had also approved boosting paid-up equity capital by up to 1,000 crore by a Follow-on Public Offer (FPO)/Rights issue/Qualified Institutional Placement (QIP) or any other option in the previous quarter, it added. In the previous quarter’s results, the board also approved the financing of Tier II Capital of up to 1,000 crore through the issuance of Basel III compliant Tier II bonds.