Indian Overseas Bank (IOB) reported a 24 per cent increase in its net profit to Rs 808.10 crore in the January-March quarter of FY24, up from Rs 650.07 crore in the same period last year, on the back of healthy growth in core income and a decline in provisions.
Sequentially, the net profit increased by 12 per cent from Rs 722.56 crore in the third quarter of FY24.
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The total income of the bank increased by 37.43 per cent to Rs 9,112.67 crore compared to the same period last year, while net interest income (NII) improved by 27.67 per cent to Rs 6,629 crore. Other income rose to Rs 2,477 crore from Rs 1,430 crore in the same period.
The operating expenses of IOB increased in the quarter under review to Rs 3,281.38 crore, compared to Rs 1,826.58 crore, owing to higher employee-related expenses.
“The operating expenses increased due to salary expenses, which has also led to an increase in the cost-to-income ratio,” said Ajay Kumar Srivastava, managing director and chief executive officer of IOB, during a post-earnings media call.
The bank's cost-to-income ratio stood at 62.58 per cent compared to 49.23 per cent last year.
The provisions of IOB declined to Rs 767.56 crore from Rs 995.85 crore in Q4 FY23.
The asset quality of the bank improved. The gross non-performing assets (GNPA) ratio for the quarter ended March 31, 2023, was 3.10 per cent, compared to 3.90 per cent in the previous quarter. Net NPA was at 0.57 per cent compared to 0.62 per cent in the same period.
The lender recorded healthy growth in gross advances to Rs 2.19 trillion as of March 31, 2024, compared to Rs 1.89 trillion in the same period last year. The lender's deposits increased to Rs 2.86 trillion from Rs 2.60 trillion over the same period.
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