CREDAI-MCHI, in collaboration with MPCB and WRI India, conducts a capacity-building workshop on mitigating air pollution at construction sites-Borana Weaves Limited Rs. 144.89 Crore IPO Opens on Tuesday, May 20, 2025-Mudra Vaibhav Devgirkar scores 96:20 percent-Shri Indradev Singh Hindi High School in Ghatkopar achieves 100% results in English medium and 98% results in Hindi High School-Acharya Shri Mahashramanji garden in Marol Sagbagh will set an example towards Mumbai's beautification- Minister Ashish Shelar-Badminton court inaugurated in Powai through the efforts of MLA Dilip Mama Lande-Operation Sindoor: India’s Decisive Action Against Terrorism Draws Responsible Global Responses-Move, Work, Relax: The Perfect Innerwear for Every Occasion-No situation is a good situation when any country is in state of war against terrorism: Mr. Prakash Sanghvi-युनियन बँक ऑफ इंडियाच्या तिमाही नफ्यात ५० टक्क्यांनी वाढ

Indian Overseas Bank announces Q4 / FY21 Financial Results

INDIAN OVERSEAS BANK

Posted By: Sachin Murdeshwar June 14, 2021

CHENNAI, MUMBAI, 14 JUNE, 2021 (GPN):

                                                                                           (Rs. In Crores)

31.03.2021 (Q4)31.03.2020 (Q4)31.03.2021 (12 M)31.03.2020 (12 M)
Operating Profit1724119758963534
Net Profit / Loss350144831(8527)
Deposits240288222952240288222952
Gross Advances139597134771139597134771
Investments98412820299841282029
Business Mix379885357723379885357723
CASA1021658975110216589751
CASA Ratio42.52%40.26%42.52%40.26%
Gross NPA 16323199131632319913
Net NPA4578660345786603
Net Interest Margin2.22%2.60%2.39%2.03%
Gross NPA Ratio11.69%14.78%11.69%14.78%
Net NPA Ratio3.58%5.44%3.58%5.44%
Cost to Income Ratio49.58%54.43%48.54%59.21%
PCR90.34%86.94%90.34%86.94%
CRAR15.32%10.72%15.32%10.72%
RoE21.33%19.63%13.21%(163.72)
RoA0.50%0.20%0.31%(2.95)
CD Ratio58.10%60.45%58.10%60.45%

The Bank has posted yearly net profit of Rs.831 crores for the year ended 31.03.2021 after 6 years.

12(M)Variance
31.03.202131.03.2020Rs. in crore% Growth
Operating Profit58963534236266.84%
Net Profit831(8527)9358Positive Growth
  • The Bank plans to come out of Prompt Corrective Action by focusing on Recovery, low cost deposits and less capital consuming advances.
  • Profit for the quarter ended 31.03.2021 recorded at Rs.350 crores as against Rs.213 crores for the quarter ended 31.12.2020.
  • Net NPA has stood at 3.58% which is within prescribed RBI guidelines.
  • During the quarter GNPA reduced by Rs.430 crore.  GNPA ratios reduced to 11.69% from 14.78% QoQ
  • The provision coverage ratio improved to 90.34%

Performance Highlights for the Financial Year ended March 31, 2021

  1. CASA of the Bank improved to 42.52% (Domestic 42.70%) as on 31st March 2021 as against 40.26% (Domestic 40.67%) as on 31st March 2020. Total CASA has increased from Rs.89,751 crores as on 31.03.2020 to Rs.1,02,165 crores as on 31.03.2021,and registered 13.83% growth as at 31st March ’21 over 31st March ‘20. 
  1. Total business stood at Rs.3,79,885 crore as on 31st March 2021 as against Rs.3,57,723  crore as on 31st March 2020 (Increase of 6.20%).
  1. Total deposits increased to Rs.2,40,288 crore as on 31st March 2021 as against Rs.2,22,952 crore as on 31st March 2020. The Bank has reduced the concentration of Bulk Deposits and high cost deposits and increased Retail Term Deposits to have a stable and sustainable deposit profile and reduce the cost of funds. 
  1. Gross Advances stood at Rs.1,39,597 crore as on 31st March 2021 as against Rs.1,34,771 crore as on 31st March 2020. The Bank has evolved a policy of not taking fresh exposures in stressed sectors, below hurdle rated accounts and BB and below rated accounts. The Bank has also exited from accounts in the stressed sectors, wherever feasible.
  1. Operating Profit for the year ended 31.03.2021 stood at Rs.5,896 crore as against of Rs.3,534 crore on 31.03.2020 which is an increase of 67% over the previous year.
  1. Total income for the year ended 31.03.2021 stands at Rs.22,525 crore as against Rs.20,766 crore for the previous year (2019-20)
  1. Interest income stands at Rs.16,966 crore for the year ended 31.03.2021.
  1. Other income stands at Rs.5,559 crores for the year ended 31.03.2021.
  1. Total Expenditure stands at Rs.16,629 crore for the year ended 31st March 2021 which is reduced as against Rs.17,232 crores for the year ended 31st March 2020.

Cost to Income decreased from 59.21% as at March ’20 to 48.54% as at March ’21.

  1. Recovery in NPA accounts for the year ended 31.03.2021 is Rs.6,831 crores.  
  • GNPA reduced from 14.78% as at March ’20 to 11.69% as at March ’21.
  • NNPA reduced from 5.44% as at March ’20 to 3.58% as at March’21
  • Provision Coverage Ratio (PCR) improved from 86.94% as at March ’20 to 90.34% as at March ‘21

Performance Highlights for the Quarter ended March 31, 2021 QoQ (Sequential) ie  Dec,31.2020

  1. Total business stood at Rs.3,79,885 crore as on 31st March 2021 as against Rs.3,71,585 as on 31st December 2020.
  1. Total deposits stood at Rs.2,40,288 crore as on 31st March 2021 as against Rs.2,34,116 as on 31st December 2020. 
  1. CASA of the stood at 42.52% as on 31st March 2021 as against 40.93% as on 31st December 2020.
  1. Gross Advances stood at Rs.1,39,597 crore as on 31st March 2021 as against Rs.1,37,469 crore as on 31st December 2020. Bank focused on re-aligning its loan book for efficient capital utilization.
  1. Operating Profit stood at Rs.1,724 crore for quarter ended 31st March 2021 as against Rs.1,731 crore for the quarter ended 31st December 2020.
  1. Net profit for the quarter ended 31st March 2021 is Rs.350 crore as against Rs.213 crore as on 31st December 2020.
  1. Total income is Rs.6,074 crore for the quarter ended 31st March 2021 as against Rs.5,787 crore for the quarter ended 31st December 2020.
  1. Interest income stood at Rs.4,057 crore for the quarter ended 31st March 2021 as against Rs.4,244 crore for the quarter ended 31st December 2020.
  1. Other  income increased to Rs.2,016 crore for the quarter ended 31st March 2021 as against Rs.1,543 crore for the quarter ended 31st December 2020. 
  1. Total Expenditure stood at Rs.4,349 crore for the quarter ended 31st March 2021 as against Rs.4,055 crore for the quarter ended 31st December 2020.            
  1. NPA MANAGEMENT: Gross NPA as at 31st March 2021 stood at Rs.16323 crore as against Rs.16,753 crore as at 31st December 2020. 
  1.  Recovery made Rs.3934 crore for the quarter ended March ’21 as against Rs.1625 crore as at 31st December 2020.
  1. Net NPA as at 31st March 2021 and stood at Rs.4,578 crore with ratio of 3.58% as against Rs.3,905 crore with ratio of 3.13% as on 31st December 2020.
  1. Provision Coverage Ratio stood at 90.34% as on 31st March 2021 as against 91.91% as on 31st December 2020.

Performance Highlights for the Quarter ended March 31, 2021 – Q4 March’21 over Q4 March‘20

  1. Deposits stood at Rs.2,40,288 as on 31.03.2021 as against Rs.2,22,952 on 31.03.2020.
  1. Gross Advances stood at Rs.1,39,597 crore as on 31st March 2021 as against Rs.1,34,771 crore as on 31st March 2020.
  1. Total business stood at Rs.3,79,885 crores  as on 31.03.2021 as against Rs.3,57,723 crores  on 31.03.2020.
  1. Operating Profit for quarter ended 31st March 2021 registered growth of 44% and stood at Rs.1,724 crore as against Rs.1,197 crore for the quarter ended 31st March 2020.
  1. Net Profit for the quarter ended 31st March 2021 stood at                      Rs.350 crore as against Rs.144 crore for the quarter ended 31st March 2020.
  1. Total income stood at Rs.6,074 crore for the quarter ended 31st March 2021 as against Rs.5,537 crore for the quarter ended 31st March 2020.
  1. Interest income stood at Rs.4057 crore for the quarter ended 31st March 2021 as against Rs.4,442 crore for the quarter ended 31st March 2020.                                     
  2. Other income increased to Rs.2,016 crore for the quarter ended 31st March 2021 as against Rs.1,095 crore for the quarter ended 31st March 2020.  
  1. Total Expenditure for the quarter ended 31st March 2021 continued to remain at Rs.4,350 crores.  Operating expenses stood at Rs.1,695 crore for the quarter ended 31st March 2021 as against Rs.1,430 crore for the quarter ended 31st March 2020.
  1. NPA MANAGEMENT: Gross NPA as at 31st March 2021 stood at Rs.16,323 crore with ratio of 11.69% as against Rs.19,913 crore with ratio of 14.78% as at 31st March 2020. 
  1. Recovery made Rs.3934 crores for the quarter ended March ’21 as against Rs.2377 crores for the quarter ended 31st March 2020.  
  1. Net NPA is contained to Rs.4,578 crore with ratio of 3.58% as at 31st March ‘21 as against Rs.6,603 crore with ratio of 5.44% as on 31st March ‘20.
  1. Provision Coverage Ratio is improved to 90.34% as on 31st March 2021 as against 86.94% as on 31st March 2020.
  • CAPITAL ADEQUACY RATIO (CRAR):
ParticularsBasel III as on 31.03.2021Regulatory Requirement
CET 112.91%5.50%
Tier I12.91%7.00%
Tier II2.41%2.00%
Total CRAR                                       15.32%9.00%*

* Excluding CCB

Total Capital includes Capital infusion by GOI of Rs.4100 cr received during FY 2020-21.

  • KEY FINANCIAL RATIOS:
  • Credit Deposit Ratio is 58.10% as on 31.03.2021 as against 60.45 % as on 31.03.2020 
  • Average Cost of Deposit is 4.70% for the year ended 31.03.2021 as against 5.33% for the year ended 31.03.2020. 
  • Average Yield on Advances is 8.00% for the year ended 31.03.2021 as against 7.01% for the year ended 31.03.2020.
  • Cost to Income Ratio is 48.54% for the year ended 31.03.2021 as against 59.21% for the year ended 31.03.2020. 
  • Net Interest Margin is 2.39% for the quarter ended 31.03.2021 as against 2.03% for the year ended 31.03.2021. 
  • CAPITAL INFUSION BY GOVERNMENT OF INDIA

On 31.03.2021, the Bank has received Rs.4100 crores as capital infusion by the Government of India for which the Bank has allotted 246,54,23,932 equity shares of Rs.10/- each for cash at Issue Price of Rs.16.63 per equity share (including premium of Rs.6.63 per equity share) on preferential basis, to Government of India. Upon allotment made, GOI’s shareholding increased to 96.38% from 95.84%.

Developments / Initiatives / Accolades and Awards / Implementation of New Programmes

Digital Banking Department

MOBILE BANKING

  • Launched in the year 2009 
  • New version with customer friendly and enhanced features released in 2020
  • Product has all the advanced features such as
    1. Self-registration without visiting branch
    2. Login using Biometric authentication for enhanced security and access
    3. mPassbook facility available to view and download statements
    4. Voice assistance facility
    5. Deposit opening , renewal, pre-closure and closure
    6. Bharat Bill Payment System (BBPS) integration.
    7. PMJJBY/PMSBY insurance enrolment
    8. Pay Later/Standing Instructions facility
    9. Mobile Banking application in 10 regional languages
  • Number of registrations made till 31.03.2021 are 36.26 lakhs

BHIM IOB UPI

  • Introduced from the year 2016
  • By Linking Savings or Current account, customer can
    1. Send money using VPA, A/c No and IFSC Code, QR Code
    2. Collect money using remitters VPA
  • Introduced separate 6 digit PIN for each account for enhanced security.
  • Has the facilities of One Time mandate creation and ASBA
  • Number of registrations made till 31.03.2021 are 39.64 lakhs

Debit Cards

  • Cards are issued in different flavours (Gold, Platinum and Signature) under VISA, Rupay and Master Card
  • Both Insta and Personalized cards are issued to customers
  • Green Pin (in place of Paper pin) for Debit Cards introduced.
  • Facility has been provided to card holders for blocking Debit Cards through Bank Web Site, Internet Banking and Mobile Banking.
  • Option given to card holders to switch ON/Off and set/modify transaction limit, if any, for all types of transactions – Domestic and International, at POS/ATMs/Ecom transactions/contactless transactions through Internet banking and Mobile banking.
  • National Common Mobility Card (NCMC) introduced in RUPAY category which can also be used for contactless transactions.

Management of ATMs/Cash Recyclers/Passbook Kiosks

  • IOB is having 3145 machines as on 31.03.2021 of which 1927 are ATMs and 1218 are Cash Recyclers.
  • Of the total 3145 machines 2720 are Onsite and 425 are Offsite
  • Out of total 3129 machines, 2700 are Branch Managed (CAPEX model) and 445 are vendor managed (OPEX model)
  • Bank is having 2109 Passbook Kiosks belonging to four vendors, functioning PAN INDIA

INTERNET BANKING

  • The software developed in house introduced in the year 2003
  • Some of features are Balance Enquiry, Transaction details, Funds Transfer using NEFT/RTGS/IMPS etc, Online Tax and Utility Payments Bill Payments, IPOs, Top Up of Prepaid Cards and Credit Card Payments
    • Internet Banking application in 10 regional languages
    • Total registrations till 31.03.2021 are 22.16 lakhs

Bank on Wheels

  • As part of Bank’s Commitment under EASE (Enhanced Access and Service Excellence), Our Bank has launched “Bank on Wheels” (Mobile ATMs) in 13 districts of Tamil Nadu and one district of Kerala where IOB is the Lead Bank besides one district in Andhra Pradesh (Vijayawada)
  • Each Bank on Wheel is equipped with one Cash Dispenser, one Passbook Kiosk and 55” LED Screens for marketing of various products of the Bank. These Screens are also utilized for delivering Financial Inclusion messages or any educative series to the general public.
  • A Business Correspondent will also available in the vehicle to popularise the bank schemes.

RTGS/NEFT 

  • Available for Customer and Inter Bank transactions
  • Customers can avail NEFT channels through Mobile Banking and NEFT and RTGS through Internet Banking .
  • NEFT & RTGS channels functioning 24 X 7

IOB PAY

  • Introduced in the year 2017
  • Developed in house and integrated with Aggregators
  • The product is an integrated on line payment which offers fee payments, merchant payments, donations. An easy and effective way of collecting payments by the merchants.
  • Targeted to enable Online Payments for different type of merchants with or without merchant web site.
  • 470 Institutions have been registered in IOB Pay.

Marketing Department:

  • Corona Specific Health Insurance Products launched

Our Bank has launched Corona coverage Specific Health Insurance products (Corona Kavach and Corona Rakshak) on 20.07.2020 as Per IRDAI guidelines in coordination with Universal Sompo General Insurance Co Ltd.

  • New tie up under General Insurance Category

Our Bank has partnered with M/s SBI General Insurance Co Ltd for providing variety of General Insurance Products to IOB Customers.  In this regard a Corporate Agency Agreement signed on 25.02.2021 with SBI General Insurance Co Ltd.

  • New tie up under standalone Health Insurance category

Our Bank has partnered with M/s Max Bupa Health Insurance Co Ltd for providing competitive Standalone Health Insurance products to IOB Customers. In this regard a Corporate Agency Agreement signed on 22.03.2021 with M/s Max Bupa Health Insurance Co Ltd.

Financial Inclusion:

  • “Wonderous Warrior” of Winning Wednesday Campaign for July- December 2020, January 2021, February 2021 and March 2021. 
  • Recognition to GM-FI. from PFRDA for qualifying in “Shine and Succeed” campaign during July-August 2020.
  •  Qualified for “OLD AGE Financial Freedom Fighters” Campaign with Exemplary award and Recognition from PFRDA for 6 Regional Heads and Nodal Officer of our Bank. 
  •  Qualified for “Makers of Excellence 4.0” Campaign and Recognition from PFRDA.

Implemented the following new programme:

We have introduced End to End Online Gold Loan application, on our Bank’s 84th Foundation Day (i.e, on 10.02.2021) to digitalize the Gold Loan facility with a customer friendly user interface. 

Our Bank customers can apply for Gold Loan through our Bank website, mobile banking and internet banking while non-customers can apply through our Bank Website. 

Applicants can apply for any of our 4 Gold Loan Schemes viz. Agriculture Term loan – Jewellery (to meet Short-term production, Agri-allied activities and investment credit needs of farmers), Jewel loan – Others (to meet domestic/business needs), Jewel Loan SME (to meet investment need in MSME – Manufacturing, Services and Retail Trade sectors) and IOB Swarnalakshmi (to need domestic needs (i.e., non-productive) to women. 

*******************

About the Author

Sachin Murdeshwar
Sachin Murdeshwar is a Sr.Journalist and Columnist in several Mainline Newspapers and Portals.He is an ardent traveller and likes to explore destinations to the core.

Be the first to comment on "Indian Overseas Bank announces Q4 / FY21 Financial Results"

Leave a comment

Your email address will not be published.


*