Mumbai: State-owned Indian Overseas Bank (IOB) on Wednesday reported a 113 per cent jump in its standalone profit after tax (PAT) to Rs 454 crore in the quarter ended December 2021, helped by lower provisions and higher cash recovery.
Its standalone PAT stood at Rs 213 crore in the corresponding quarter last year.
"The profit in the quarter was driven by lower provisioning requirements, improvement in cash recovery and also as we were able to contain our operational cost," the bank's Managing Director and CEO Partha Pratim Sengupta told reporters.
The bank, which came out of the Reserve Bank of India's (RBI) prompt corrective action (PCA) framework in September 2021, is aiming the net profit to touch around Rs 1,600 crore in the current financial year.
Interest income marginally declined to Rs 4,198 crore during the quarter ended December 31, 2021, compared with Rs 4,244 crore last year. Sengupta said lower treasury income due to the hardening of yields impacted the interest income.
Net interest margin (NIM) declined to 2.40 per cent from 2.45 per cent in the year-ago period.
Its gross non-performing assets (GNPAs) reduced to 10.45 per cent, against 12.19 per cent a year ago. Net NPA came down to 2.63 per cent from 3.13 per cent.