NEW DELHI: State-run Indian Overseas Bank (IOB) on Monday saw a jump of over two times in its net profit at Rs 349.77 crore in the last quarter of the fiscal ended March 2021 as against a net profit of Rs 143.79 crore in the same period a year ago.
Total income rose to Rs 6,074 crore as against Rs 5,484.06 crore in Q4 FY20.
The bank has also exhibited a stellar show in full fiscal year after suffering losses for six consecutive years.
The lender reported a net profit of Rs 831.47 crore in FY21 as against a net loss of Rs 8,527 crore in FY20.
Addressing reporters, Managing Director & CEO Partha Pratim Sengupta said that the bank has approached the Reserve Bank of India (RBI) seeking withdrawal of the Prompt Corrective Action (PCA) tag.
On asset quality, the bank said IOB’s gross non-performing asset (NPA) ratio improved to 11.69 per cent from 12.19 per cent in the December quarter, while the net NPA ratio rose to 3.58 percent from 3.13 per cent.
Gross NPA reduced from 14.78 per cent as at March 31, 2020 to 11.69 per cent as at March 31, 2021. The capital adequacy ratio improved to 15.32 per cent from 10.72 per cent.
Sengupta also said that the bank intends to transfer bad loans worth Rs 1,600 crore in the proposed National Asset Reconstruction Company.IOB said it had recovered about Rs 6,831 crore NPA accounts last fiscal.
The bank has also identified about Rs 8,000 crore loan for restructuring and set a cash recovery target of about Rs 4,600 crore.
On the back of resolution and pick up in advances, the bank aims to bring down gross NPAs to below 10 per cent this fiscal.
The IOB chief further added that the IOB plans to raise additional funds of about Rs 2,000 crore from a follow-on equity issue and Rs 1,000 crore by issue of bonds.
In March, the government infused as much as Rs 4,100 crore in IOB.