NE BUSINESS BUREAU
CHENNAI, JULY 22
Public sector banking major Indian Overseas Bank (IOB) reported 20.93% jump in net profit to Rs 632.81 crore on 21.53% rise in total income to Rs 7,568 crore in Q1 FY25 over Q1 FY24. Operating profit stood at Rs 1,675.86 crore in June 2024 quarter, up 24.57% from Rs 1,345.32 crore posted in corresponding quarter last year.
🚀Celebrating Growth and Progress! ✨
We are thrilled to announce our stellar performance for the quarter ended 30 June 2024!
A big thank you to our dedicated team and valued customers for making this possible.🌟 Business Mix: UP 📈
🌟 Gross & Net Profit: UP 📈
🌟 Gross &… pic.twitter.com/r8n6ekOIb9— Indian Overseas Bank (@IOBIndia) July 22, 2024
Profit before tax climbed 45.45% year on year (YoY) to Rs 737.99 crore in the quarter ended 30 June 2024.
- The bank’s deposits surges 13% on-year and 4.5% quarter-on-quarter to Rs 2.98 lakh crore for the April to June period
- The bank will raise Rs 5,000 crore by this October, reducing the government’s stake in the public sector bank (PSB) by 12%
Net interest income rose 5.08% to Rs 2,441 crore in Q1 FY25 as compared to Rs 2,323 crore in the corresponding period last year. Net interest margin (NIM) reduced to 3.06% in Q1 FY25 as compared to 3.21% registered in the same period a year ago.
On asset quality front, the bank’s gross non-performing assets (NPAs) declined 51.22% to Rs 6,649 crore as on 30 June 2024 as against Rs 13,629 crore as on 30 June 2023.
The ratio of gross NPAs reduced to 2.89% as on 30 June 2024 as compared to 7.13% as on 30 June 2023. The ratio of net NPAs reduced to 0.51% as on 30 June 2024 from 1.44% as on 30 June 2023.
Provision coverage ratio improved to 96.96% as on 30 June 2024 as against 94.03% as on 30 June 2023.
Total deposits stood at Rs 2,98,681 crore (up 12.97% YoY) while advances came in at Rs 2,30,092 crore (up 20.30% YoY) as on 30 June 2024.
Total CASA rose 7.93% to Rs 1,25,947 crore as on 30 June 2024 as compared with Rs 1,16,694 crore as on 30 June 2023. CASA ratio reduced to 42.17% as on 30 June 2024 from 44.14% reported in the same period a year ago.
CRAR improved to 17.82% as on 30 June 2024 as against 16.56% as on 30 June 2023.
Indian Overseas Bank (IOB) will raise Rs 5,000 crore by this October, reducing the government’s stake in the public sector bank (PSB) by 12%. Currently, the government holding in the state-owned bank stood at 97%.
IOB MD & CEO Ajay Kumar Srivastava said Rs 5,000 crore would be raised through various options, including qualified institutional placement (QIP) and employee stock purchase plan (ESPP) in multiple trenches.
