The profit of the state-owned Indian Overseas Bank (IOB) increased by 18 per cent to 650 crore in the March quarter, owing to a rise in interest revenue and improved asset quality.
In the same quarter last year, the Chennai-based bank earned a net profit of 552 crore.
According to a regulatory filing, IOB’s overall income grew to 6,622 crore in the most recent March quarter from 5,719 crore the previous year.
The bank’s interest income increased to 5,192 crore from 4,215 crore in the fourth quarter of FY22. On the asset quality front, the bank improved, with gross NPAs (Non-Performing Assets) falling to 7.44 percent from 9.82 percent a year ago.
At the same time, net NPAs fell to 1.83 percent, down from 2.65 percent the previous year.
The capital adequacy ratio increased to 16.10% in the quarter under review, up from 13.83 per cent in FY22.
The bank’s board of directors has approved the raising of paid-up equity capital in the amount of Rs 1,000 crore through a Follow-on Public Offer (FPO)/Rights issue/Qualified Institutional Placement (QIP) or any other option.
Furthermore, the board has approved the financing of Tier II Capital of up to 1,000 crore through the issue of Basel III Compliant Tier II bonds or other instruments.