Indian Overseas Bank (IOB), a prominent public sector mortgage lender, recently reported a robust performance in the second quarter of the fiscal year 2023-24. The bank revealed a significant 24.75% growth in its net profit during this period.
According to a regulatory filing by IOB, for the quarter ending on September 30, the bank achieved a total income of Rs 6,935.21 crore, a notable increase from the Rs 5,852.45 crore recorded during the same period in the previous fiscal year. Impressively, IOB secured a net profit of approximately Rs 624.58 crore, a substantial rise from the Rs 501.34 crore net profit recorded earlier.
IOB’s interest income also showed remarkable growth, reaching Rs 5,821 crore during the quarter ending on September 30, 2023, compared to Rs 4,718 crore for the same period in the previous year. Meanwhile, the non-interest income for the fiscal year ending September 30, 2023, was reported at Rs 1,114 crore, in comparison to the Rs 1,135 crore in the year ending September 30, 2022.
As of September 30, 2023, IOB disclosed its gross non-performing assets (GNPA) and net non-performing assets (NPA) at Rs 9,893.30 crore and Rs 1,364.34 crore, respectively. This marks a positive shift from the previous year when the GNPA stood at Rs 14,726.35 crore and the net NPA at Rs 4,148.60 crore.
In an effort to address NPAs, IOB allocated Rs 1,120.50 crore during the period under review, a substantial increase from the Rs 627.15 crore allocated in the corresponding period of the previous year.
Furthermore, IOB maintained a capital adequacy ratio of 17% as of September 30, 2023, reflecting its financial strength and stability.
