NEW DELHI: State-owned Indian Overseas Bank (IOB) on Saturday reported a 20% rise in net profit to Rs 392 crore for the first quarter of the financial year 2022-23, helped by a decline in bad loans. The Chennai-based bank had reported a net profit of Rs 327 crore in the corresponding quarter of FY22. The Chennai-based bank’s total income fell to Rs 5,028 crore in the first quarter of the current fiscal, as against Rs 5,607 crore in the same period a year ago, IOB said in a regulatory filing.
Operating profit slipped to Rs 1,026 crore from Rs 1,202 crore earlier. However, the interest income of the bank moved up to Rs 4,435 crore as against Rs 4,063 crore. Net interest margin (NIM) rose to 2.53 per cent as against 2.34 per cent at the end of the first quarter of FY22.
The bank’s gross non-performing assets (NPA) ratio fell to 9.03% in Q1FY23 from 11.48% at June-end last year. Similarly, net NPAs declined to 2.43%from 3.15%. As a result, the provision for bad loans declined to Rs 132.73 crore from Rs 1,010.15 in the same period a year ago. Provision Coverage Ratio (PCR) improved to 91.86% as of June 30, 2022.