Chennai-based state-run lender Indian Overseas Bank has reported a massive 76 percent jump in net income for the June quarter at Rs 1,111.04 crore after a strong showing in all key parameters, especially the asset quality side. Total income of the lender rose 17% to Rs 8,866.47 crore including other income of Rs 1,480.92 crore, the management said in a statement Friday.
The key net interest income climbed nearly 13 percent to Rs 2,746 crore and the net interest margin stood at 3.04 percent giving it an operating margin of 26.59 percent from 22.14 per cent, and a net profit margin of 12.53 percent, up from 8.36 percent.
On the asset quality front, the bank reported a sequential as well as annualised decline in its non-performing assets. While gross NPAs declined to Rs 5,178.46 crore from Rs 6,648.71 crore, net NPAs also dropped to Rs 816.38 crore from Rs 1,153.51 crore. As a result, provisions and contingencies declined to Re 844.05 crore from Rs 937.87 crore.
In percentage terms, gross NPAs declined to 1.97 as against 2.89, down by 92 bps on an annualised basis and by 17 bps on a sequential basis.
Similarly, net NPAs came down to 0.32 from 0.51% or by 19 bps and 5 bps sequentially.
Provision coverage ratio improved by 51 bps to 97.47. Gross advances increased 14.05 percent to Rs 2,62,421 crore from Rs 2,30,092 crore. Deposits increased by Rs 32,111 crore to Rs 3,30,792 crore registering a growth of 10.75%.
Gross advances increased by Rs 32,329 crores, up 14.05% to Rs 2,62,421 crore.
Slippage ratio improved by 3 bps to 0.10 while credit cost stood stable at 0.29%.
The bank made recoveries of Rs 269 crore more to Rs 851 crore from Rs 582 crore.