Indian Overseas Bank Q4 Results: Profit Rises 30% To Rs 1,050 Crore
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.
The bank's MD and CEO Ajay Kumar Srivastava said the bank expects 13-14 per cent growth across sectors during the current financial year.
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.
Briefing reporters, Srivastava said the bank would raise Rs 4,000 crore during the current financial year following which the Government of India's shareholding would come down to 90 per cent from the current 94.61 per cent.
Subject to shareholders approval, the board plans to mobilise up to Rs 4,000 crore by way of follow-on public offer, rights issue, qualified institutional placement or any other mode or combination in one or more tranches during FY 2025-26.
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 Micro, Small and Medium Enterprises (MSME) 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.
On fund raising, he said post the fund raise of Rs 4,000 crore, the government of India share holding would come to 90 per cent as a 'resultant effect'.
(This report has been published as part of the auto-generated syndicate wire feed. Apart from the headline, no editing has been done in the copy by ABP Live.)
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