New Delhi/Chennai: The state-owned Indian Overseas Bank (IOB) on Friday reported a 30 per cent rise in net profit to Rs 1,051 crore for the March quarter, helped by a decline in bad loans and a rise in interest income. The Chennai-based lender had earned a net profit of Rs 808 crore in the year-ago period.
During the quarter, the bank’s total income increased to Rs 9,215 crore, as against Rs 9,106 crore a year ago.
Interest income grew to Rs 7,634 crore during the period under review, from Rs 6,629 crore in the corresponding quarter a year ago.
On the asset quality front, the bank’s gross Non-Performing Assets (NPAs) moderated to 2.14 per cent of gross advances, as compared to 3.10 per cent by the end of March 2024.
Similarly, net NPAs also came down to 0.37 per cent of the advances, over 0.57 per cent at the end of 2024.
As a result, total provision during the quarter eased to Rs 200 crore, as against Rs 409 crore in the same quarter a year ago.
The bank’s capital adequacy ratio rose to 19.74 per cent, from 17.28 per cent at the end of FY 24.
For the entire financial year 2024-25, the bank reported a 26 per cent increase in its profit at Rs 3,335 crore, as against Rs 2,656 crore in the previous year.
The bank’s total income during the financial year rose to Rs 33,676 crore, as against Rs 29,706 crore a year ago.
Responding to a query, Srivastava said, the 13-14 per cent growth would be across sectors including retail, agricultural and MSMEs and there is no focus in any particular sector.
“Currently, the RAM sector (Retail, Agriculture and MSME) is around 77 per cent. There is no particular area as such”,
he said.