Indian Overseas Bank (IOB) has unveiled its financial results for the fourth quarter, marking a significant milestone with a record-breaking 24 per cent surge in net profit, reaching ₹808 crore. This achievement, announced on Thursday, showcases the bank’s robust performance amidst challenging economic landscapes.
For the fiscal year ending March 31, 2024, IOB reported a consolidated net profit of ₹2,665.66 crore, witnessing a substantial increase from ₹2,103.99 crore in the preceding year. The bank’s operating profit also demonstrated a commendable rise, reaching ₹1,961 crore compared to ₹1,882 crore year-over-year.
The performance was underlined by a notable uptick in consolidated total income, soaring to ₹9,112.67 crore from ₹6,630.57 crore during the same period last year, as detailed in the regulatory filing.
The bank reported a significant control over slippages, with only ₹1,517 crores recorded, constituting 0.87 per cent of performing advances as of March 31, 2023. Additionally, total recovery surged to ₹4,549 crores by March 31, 2024, leading to a notable improvement in Gross NPA, which plummeted to 3.10 per cent from 7.44 per cent a year earlier.
The bank’s interest income for the quarter concluded on March 31, 2024, witnessed a remarkable upswing, climbing to ₹6,629 crores from ₹5,192 crores, indicating a robust growth trajectory. Moreover, the net interest margin strengthened to 3.28 per cent compared to 2.93 per cent as of March 31, 2023.
IOB’s total business also experienced significant growth, surging to ₹5,04,923 crores by March 31, 2024, propelled by an impressive 43.90 per cent increase in Current Account Savings Account (CASA).
Looking ahead, the Chennai-headquartered public sector lender aims to expand its footprint by opening 88 new branches throughout the year, underscoring its commitment to enhancing accessibility and serving its customers effectively.
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IOB‘s exceptional financial performance amidst a challenging economic environment underscores its resilience and strategic prowess, positioning it as a formidable player in India’s banking landscape.
