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Indian Overseas Bank profit doubles to Rs 327 crore in Q1

Total income during Q1FY22, however, was down at Rs 5,155 crore as against Rs 5,234 crore in Q1FY21, Indian Overseas Bank said in a regulatory filing.

Published: 03rd August 2021 05:11 PM  |   Last Updated: 04th August 2021 08:15 AM   |  A+A-

Indian Overseas Bank

Indian Overseas Bank (File photo| Express)

By Express News Service

NEW DELHI: Helped by lower provisions and better recoveries, public sector Indian Overseas Bank (IOB) reported a net profit of Rs 327 crore for the quarter ended June 30 as against Rs 121 crore a year ago.

Provisions and contingencies for the quarter was Rs 868 crore, compared with Rs 970 crore in the year-ago quarter. The lender has exited all stressed accounts and going forward it will not be taking fresh exposures in stressed sectors, below hurdle-rated accounts and BB and below rated accounts as it awaits Reserve Bank of India’s nod to come out of the prompt corrective action (PCA) framework.

“This year (in Q1 FY22), around Rs 1,158 crore of slippages happened, but it was offset by higher cash recoveries of Rs 1,125 crore. We had to provide less (for bad loans) compared to last year because of this,” IOB Managing Director and CEO Partha Pratim Sengupta told reporters.

The Chennai-headquartered lender said it reduced non-performing assets (NPAs) worth Rs 1,616 crore during the quarter compared with Rs 1,969 crore in the same quarter last year. Gross NPA ratio improved to 11.48% from 13.9%. In absolute terms, the gross NPAs were worth Rs 15,952 crore, down from Rs 18,291 crore. Net NPAs, too, fell to 3.15% (Rs 3,998 crore) from 5.10% (Rs 6,081 crore), according to IOB’s disclosures.

During the quarter, it wrote off Rs 793 crore of bad loans. It also sold Rs 23.18 crore of NPAs to asset reconstruction companies (ARCs) in the April-June period. Sengupta said the bank has set a recovery target of Rs 4,500 crore for this financial year. On capital raising, he said the bank may look at raising funds through tier-II bonds in November.

At operating level, profit rose to Rs 1,202 crore in June quarter as against `1,094 crore in the year-ago period on account of lower interest expenditure.

Bank of India net profit falls 15%  
New Delhi: Bank of India on Tuesday reported a 14.7% decline in net profit at Rs 720 crore for the June quarter. Total income was down at Rs 11,698.13 crore as against Rs 11,941.52 crore in the year-ago period. Net profit was impacted due to higher operating expenses, which rose 15.8% y-o-y to Rs 2,715 crore, and higher total provisions which went up 4.3% y-o-y to Rs 2,086 crore. Net interest margin (NIM), a key indicator of profitability, was down 38 basis points (bps) y-o-y but was up by 19 bps on a sequential basis. 



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