State-owned Indian Overseas Bank (IOB) reported a 24% rise in net profit, reaching ₹777 crore for the second quarter ended September 2024, compared to ₹625 crore in the same period last year. The bank’s total income increased by 22% to ₹8,484 crore, up from ₹6,935 crore year-on-year (YoY), driven by robust interest income growth of ₹6,851 crore, compared to ₹5,821 crore last year.
IOB‘s asset quality showed significant improvement, with gross non-performing assets (NPAs) falling to 2.72% of total loans, down from 4.74% a year ago. Net NPAs also declined to 0.47% from 0.68%. This improvement led to a sharp drop in provisions for bad loans, which decreased to ₹71 crore, compared to ₹1,121 crore in the previous fiscal year.
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The bank’s Provision Coverage Ratio (PCR) stood at an impressive 97.06%, while the Capital Adequacy Ratio increased to 17.45% from 17% at the same time last year.
