R ARIVANANTHAM
CHENNAI, OCT 18
Govt-owned Indian Overseas Bank on Thursday posted a 24 per cent surge in net profit to Rs 777 crore in the second quarter ended September 2024.
📈 Indian Overseas Bank shines in Q2FY25 with a 24.32% surge in Net Profit, driven by consistent, robust business growth and enhanced asset quality! 🌟
💼 Key Highlights:
• Total Business: ₹5.40 Lakh Cr (⬆️ 12.20% YoY)
• Total Deposits: ₹3.10 Lakh Cr (⬆️ 13.75% YoY)
•… pic.twitter.com/gTosSXJ2ro— Indian Overseas Bank (@IOBIndia) October 18, 2024
“Net profit grew 24.32 per cent year-on-year and 22.75 per cent quarter-on-quarter from June. We’ve maintained consistent profitability with q-o-q growth in the 24-30per cent range,” said Ajay Kumar Srivastava, IOB’s Managing Director and CEO.
- Total income increases to Rs 8,484 crore
- Earns an interest income of Rs 6,851 crore
- The bank plans to raise approximately ₹2,000 crore in 2-3 phases by March 2025
The lender had earned a net profit of Rs 625 crore in the same quarter a year ago.
The bank plans to raise approximately ₹2,000 crore in 2-3 phases by March 2025, with the first tranche expected via a Qualified Institutional Placement (QIP).
Its total income increased to Rs 8,484 crore during the quarter under review against Rs 6,935 crore in the same period last year, IOB said in a regulatory filing.
The bank earned an interest income of Rs 6,851 crore during the quarter compared to Rs 5,821 crore in the year-ago period.
With regard to asset quality, the bank was able to reduce gross NPAs to 2.72 per cent of the gross loans by the end of September 2024 from 4.74 per cent a year ago.
Similarly, net NPAs or bad loans came down to 0.47 per cent from 0.68 per cent at the end of the second quarter of the previous fiscal.
As a result, provisions for bad loans declined significantly to Rs 71 crore compared to Rs 1,121 crore earmarked in the same quarter of FY24.
Provision Coverage Ratio of the bank stood at 97.06 per cent as of September 30, 2024.
Capital Adequacy Ratio increased to 17.45 per cent compared to 17 per cent at the end of the second quarter of last fiscal.
