NEW DELHI: Indian Overseas Bank on Wednesday reported over 2x growth in its net profit for the December quarter (Q3) of FY22 on account of lower provisions and higher cash recovery. The state-owned bank’s profit jumped from Rs 213 cr in Q3FY21 to Rs 454 cr in Q3FY22.
"The profit in the quarter was driven by lower provisioning requirements, improvement in cash recovery and also as we were able to contain our operational cost," said the bank's MD and CEO Partha Pratim Sengupta.
The bank aims the net profit to touch around Rs 1,600 crore in the current financial year. In FY21, the bank had reported a net profit of Rs 832 crore. Interest income of the bank marginally declined to Rs 4,198 crore during the December quarter, compared with Rs 4,244 crore last year. Sengupta said lower treasury income due to the hardening of yields impacted the interest income.
The lender's gross non-performing assets (GNPAs) reduced to 10.45 per cent, against 12.19 per cent a year ago. Sengupta said that they aiming to bring down gross NPA to single digit by March 31. Net NPA came down to 2.63 from 3.13 per cent.
Sengupta informed that slippages in the quarter stood at Rs 1,254 crore. Of this, Rs 650 crore was on account of divergences in NPA classification pointed out by the RBI. The divergences were mainly in education and agriculture loans of the lender, he said. Provisions came down to Rs 1,073 crore from Rs 1,518 crore in the year-ago period.
HDFC net up 11 per cent on higher core income
Mortgage lender HDFC posted an 11 per cent y-o-y growth in profit at Rs 3,261 crore in the December quarter even as asset quality deteriorated sequentially with gross non-performing assets rising by 32 basis points to 2.32 per cent.
The growth in profit was attributable to a 7 per cent jump in net interest income to Rs 4,284 crore. Credit costs for Q3 stood at a stable 0.27 per cent. The mortgage lender's capital adequacy ratio stood at 22.4 per cent as at December 31, 2021 of which tier I capital was 21.7 per cent and tier II capital was 0.7 per cent, well above the regulatory stipulation.
AUMs stood at Rs 6.19 lakh crore as at December end, against Rs 5.52 lakh crore in the previous year. Average loan size for the quarter was Rs 33 lakh. "The demand for home loans and pipeline of loan applications continues to remain strong," the company said in a press release.
Jubilant Foodworks net profit up 9.8 per cent
Food service company Jubilant Foodworks Ltd., which runs the Domino’s Pizza and Dunkin’ Donuts restaurants in India, on Wednesday reported a 9.8 per cent year-on-year jump in its December quarter profit to Rs 137.3 crore.
The company's revenue from operations grew 12.9 per cent to Rs 1,193.5 crore on improved recovery in dine-in channel, which was well supported by a continued strong momentum in delivery channel. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 13.9 per cent to Rs 317.4 crore.
EBITDA margin expanded by 24 basis points to 26.6 per cent despite significant headwinds, the company said in a statement. The firm opened a record 75 new Domino’s stores in the quarter under review, the highest ever number of new store openings by any franchisee in any quarter in any market.