MUMBAI: Chennai-based public sector lender Indian Overseas Bank has reported a 24.32 per cent growth in net income at Rs 777 crore in the September quarter, driven by strong business growth and asset quality improvement along with strong growth across key financial metrics.
Total income increased by 22.34 per cent to Rs 8,484 crore of which the key interest income grew 17.69 per cent to Rs 6,851 crore and the non-interest income clipped at 46.59 per cent to Rs 1,633 crore. This gave the bank a net interest margin of 3.08 per cent for the quarter.
Reporting a massive improvement in asset quality, the bank said its gross NPAs nearly halved to or decreased by 202 bps to 2.72 per cent from 4.74 per cent a year ago, while the net NPAs improved by 21 bps to 0.47 per cent from 0.68 per cent.
Provision coverage ratio improved to 97.06 percent, reflecting an increase of 30 bps.
The total business grew of 12.20 per cent to Rs 5,40,801 crore of which deposits grew 13.75 per cent to Rs 3,10,652 crore and gross advances increased 10.16 per cent to Rs 2,30,149 crore, the bank management told reporters in a post-earnings concall Thursday.
The low cost Casa deposits grew 10.61 percent totaling Rs 1,31,856 crore, with a Casa ratio of 42.44 per cent helping it improve the credit to deposit ratio to 74.09 for the quarter.
Total recovery for the quarter stood at Rs 1,482 crore of which recovery from the written off accounts stood at Rs 1,118 crore.
Founded in February 1937 as a private sector bank, Indian Overseas Bank was nationalized in 1969. It has 3,277 branches, 3,501 ATMs, and has 8,194 business correspondents across the country. It also has international presence in Singapore, Hong Kong, Thailand, and Sri Lanka, serving over 41 million active customers.