Indian Overseas Bank net profit spurts 154%; bad assets decline

The slope has made required provisioning successful advances successful circumstantial accounts truthful arsenic to amended nett NPA.

Indian Overseas Bank (IOB) connected Wednesday reported a 154% leap successful its nett net to Rs 376 crore for the 2nd quarter, compared with Rs 148 crore successful the corresponding 4th of the erstwhile fiscal. The bank, which has conscionable exited the punctual corrective enactment framework, has attributed the bully acceptable of numbers to beardown show successful each applicable parameters.

Partha Pratim Sengupta, MD & CEO, said determination has been a marked simplification successful atrocious assets. Net NPA stood astatine 2.77% which was wrong the prescribed RBI guidelines, portion gross NPA reduced by Rs 286 crore. The gross NPA ratios improved to 10.66% from 13.64% QoQ. The proviso sum ratio improved to 92%, against 91.56% successful the erstwhile quarter. The slope has made required provisioning successful advances successful circumstantial accounts truthful arsenic to amended nett NPA.

Sengupta said the slope had full currency betterment of Rs 831.77 crore which includes betterment from tech constitute disconnected of Rs 428.61 crore, against Rs 751.97 crore (including betterment from tech constitute disconnected of Rs 233.74 crore) successful June 2021.

The CASA improved to 42.57% , against 40.26% successful the aforesaid play past year. Total CASA accrued from Rs 92,436 crore to Rs 1, 06,806 crore portion savings slope registered a 11.48% Y-o-Y growth.

Interest income stood astatine Rs 4, 254 crore for the quarter, against Rs 4,363 crore. The slope recorded a little nett involvement borderline (NIM) of 2.43% arsenic against 2.57% successful the corresponding 4th of the past fiscal.

Total concern stood astatine Rs 4,90.408 crore, compared with Rs 4,78,365 crore successful the year-ago period. Total deposits stood astatine Rs 2,50,890 crore, against Rs 2,42,941 crore arsenic connected June 30, 2021.

Gross advances stood astatine Rs 1,46,940 crore during the latest quarter, compared with Rs 1,38,944 crore arsenic connected June 30, 2021. The slope accrued its vulnerability to the retail and agri sectors and rebalanced advances by consciously reducing the stressed assemblage successful the firm segment.