NEW DELHI: State-owned Indian Overseas Bank (IOB) on Thursday reported a 22% growth in its net profit at Rs 555 crore in the third quarter of financial year 2022-23 due to an increase in interest income and improved asset quality.The Chennai-based bank had posted a net profit of Rs 454 crore in the same quarter a year ago.
Total income increased to Rs 6,006 crore in the quarter from Rs 5,317 crore in the year-ago period, the bank said in a regulatory filing. Interest income increased to Rs 5,056 crore as compared to Rs 4,198 crore in the third quarter of the previous financial year.
On the asset quality front, the bank recorded an improvement with gross NPAs (non-performing assets) falling to 8.19%, as compared to 10.4% at the end of third quarter of previous financial year.
At the same time, net non-performing assets too declined to 2.43%, as compared to 2.63% in the same period a year ago. As a result, provisions for bad loans declined to Rs 711 crore as compared to Rs 937 crore during the same quarter a year ago.
The capital adequacy ratio pf the bank declined marginally to 15.16% for the December quarter of the financial year 2022-23 as compared to 15.41% at the end of third quarter of previous financial year.
Bank records improvement in asset quality
On the asset quality front, the bank recorded an improvement with gross NPAs falling to 8.19%, as compared to 10.4% at the end of third quarter of previous financial year. Net NPAs too declined to 2.43%, as compared to 2.63% in the same period a year ago