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Indian Overseas Bank (IOB) Announces Q2FY24 Results posts Rs 624.34 crore PAT

Indian Overseas Bank (IOB) Logo

Posted By: Sachin Murdeshwar October 28, 2023

Shri Ajay Kumar Srivastava, CEO, Indian Overseas Bank (IOB) – Photo By GPN

MUMBAI, 28 OCTOBER, 2023 (GPN): Indian Overseas Bank (IOB) announced today its financial report for the second quarter of the fiscal year 2023-24.

Against the backdrop of fluctuating market conditions, IOB had booked a total income of Rs 6,935.21 crore (Q2FY23 Rs 5,852.45 crore) and posted a net profit of Rs 624.58 crore ($84.6 million), a surge of 25% compared to the Rs 501.34 crore recorded in the same period last year. The bank’s net interest income, the lifeblood of any lending institution, also rose by 22% at Rs 5,821 crore for the quarter ended September 30, 2023 as against Rs 4,718 crore for the quarter ended September 30, 2022.

The non-interest income stood at Rs 1,114 crore for the year ended September 30, 2023 as against Rs 1,135 crore for the year that ended September 30, 2022.

Beyond these headline numbers, the IOB’s total business swelled to Rs 4,82,006 crore as of September 30, 2023, marking an 11% increase from Rs 4,34,441 crore last year.

As on September 30, 2023 IOB’s gross non performing assets (GNPA) and net NPA stood at Rs 9,893.30 crore (Rs 14,726.35 crore) and Rs 1,364.34 crore (Rs 4,148.60 crore) respectively.

IOB’s gross NPAs dropped sharply to 4.74% from 8.53% in the same quarter of the previous fiscal year.IOB had provided Rs 1,120.50 crore towards NPA up from Rs.627.15 crore provided during the previous year corresponding period.This reduction in NPAs is a testament to the bank’s risk management strategies and its efforts to strengthen its balance sheet.

On Friday, October 27 the bank’s shares rose by seven per cent, reflecting renewed investor confidence. The bank’s capital adequacy ratio (CAR), a measure of a bank’s capital in relation to its risk, stood at a healthy 17%, far exceeding the regulatory requirement of 9%. This high CAR ratio indicates that the bank has a robust capital buffer to protect its depositors.

Key Highlights

Particulars  30.09.2023 

(3 Months) 

 30.09.2022 

(3 Months) 

   30.09.2023 

(6 Months) 

 30.09.2022 

(6 Months) 

  
Operating Profit 

1,677 

1,494 

  

 

3,022 

2,520 

  

 
Net Profit / Loss 

625 

501 

  

 

1,125 

893 

  

 
Deposits 

2,73,093 

2,61,728 

  

 

2,73,093 

2,61,728 

  

 
Gross Advances 

2,08,913 

1,72,713 

  

 

2,08,913 

1,72,713 

  

 
Gross Investments 

97,891 

97,035 

  

 

97,891 

97,035 

  

 
Business Mix 

4,82,006 

4,34,441 

  

 

4,82,006 

4,34,441 

  

 
CASA 

1,19,206 

1,11,924 

  

 

1,19,206 

1,11,924 

  

 
CASA Ratio 

43.65% 

42.76% 

  

 

43.65% 

42.76% 

  

 
Gross NPA 

9,893 

14,726 

  

 

9,893 

14,726 

  

 
Net NPA 

1,364 

4,148 

  

 

1,364 

4,148 

  

 
Net Interest Margin 

3.12% 

2.79% 

  

 

3.18% 

2.66% 

  

 
Gross NPA Ratio 

4.74% 

8.53% 

  

 

4.74% 

8.53% 

  

 
Net NPA Ratio 

0.68% 

2.56% 

  

 

0.68% 

2.56% 

  

 
Cost to Income Ratio 

51.53% 

51.62% 

  

 

54.11% 

53.63% 

  

 
PCR 

96.76% 

90.94% 

  

96.76% 

90.94% 

  
CRAR 

17.00% 

15.14% 

  

 

17.00% 

15.14% 

  

 
RoE 

16.16% 

15.42% 

  

 

14.79% 

13.94% 

  

 
CD Ratio 

76.50% 

65.99% 

  

 

76.50% 

65.99% 

  

 
RoA 

0.75% 

0.65% 

  

 

0.69% 

0.58% 

  

 
 

Y-o-Y 

Variance 

30.09.2023 

 30.09.2022  Rs. in crore  % Growth 
Operating Profit 

1677 

1494 

183 

12.25% 
Net Profit 

625 

501 

124 

24.75% 
  • Total Business increased to Rs.4,82,006 Croresas on 30th September   2023 from Rs.4,34,441 Croresas on 30th September 2022. 
  •  Total Deposits stood at Rs.2,73,093 Crores as on 30th September 2023 as  against Rs.2,61,728 Crores as on 30th September 2022. 
  •  CASA of the Bank increased to Rs.1,19,206 Crores at 43.65% as on 30th September 2023 against Rs.1,11,924 Crores at 42.76% as on 30th September 2022. 
  •  Gross Advances stoodat Rs.2,08,913 Croresas on 30th September 2023 as against Rs.1,72,713 Crores as on 30th September 2022. 
  •  Operating Profit stood at Rs.1,677 Crores as on 30th September 2023 as against Rs.1,494 Crores as on 30th September 2022. 
  •  Net profit for the quarter ended 30th September 2023 stood at Rs.625 Crores as against Rs. 501 Crores for the quarter ended 30th September 2022. 
  •  Total Income for the quarter ended 30th September 2023 is Rs.6,935 Croresas against Rs.5,852Crores for the quarter ended 30th September 2022. 
  •  Interest Income stood at Rs.5,821 Crores for the quarterended 30th September 2023 as against Rs.4,718 Crores for the quarter ended 30th September 2022. 
  •  Non-Interest Income stood at Rs.1,114 Crores for the year ended 30th September 2023 as againstRs.1,135 Crores for the year ended 30thSeptember 2022. 
  •  NPA MANAGEMENT: Gross NPA as of 30th September 2023 stood at Rs.9893 Crores with ratio of 4.74% as against Rs.14,726 Crores with ratio of 8.53% as on 30th September 2022. GNPA has reduced both in quantum and as a percentage of Gross Advances(YoY). 
  • Reduction in Gross NPA for the quarter ended 30th September 2023 stood at Rs.4,833 Crores as against year ended 30th September 2022. 
  • Total Cash Recovery for September 2023 was Rs.435Crores as againstRs.494 Crores in September 2022. 
  • Net NPA as on 30th September 2023 stood at Rs.1,364 Crores with ratio of 0.68% as against Rs.4,148 Crores with ratio of 2.56% as on 30th September 2022 thus reducing Net NPA by Rs.2,784 Crores in absolute terms. 
  • Provision Coverage Ratio stood at 96.76% as on 30th September 2023 as against 90.94% as on 30th September 2022. Bank has made required provisioning in advances in specific Accounts to improve Net NPA. 

 

  1. KEY FINANCIALRATIOS (YoY): 

 

  • Average Cost of Deposit is 4.69% as on 30.09.2023as against 4.11% as on 30.09.2022. 
  • Average Yield on Advances stood at 8.78% as on 30.09.2023 as against 7.83% as on 30.09.2022. 
  • Net Interest Margin stood at 3.12% for as on 30.09.2023 as against 2.79% as on 30.09.2022. 
  • Credit Deposit Ratio is 76.50% as on 30.09.2023 as against 65.99% as on 30.09.2022. 

 

  1. CAPITAL ADEQUACYRATIO (CRAR): 

(As on 30.09.2023) 


Particulars 

Basel III 

 Regulatory Requirement 
CET 1 

13.81% 

5.50% 
Tier I 

13.81% 

7.00% 
Tier II 

3.19% 

2.00% 
Total CRAR 

17.00% 

9.00%* 

*Excluding CCB 

 

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.

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