MUMBAI: Chennai-based Indian Overseas Bank (IoB) has shown massive improvement in asset quality, with its gross NPAs falling by 50% or by 202 bps to 2.72% from 4.74% a year ago, while the net NPAs improved by 21 bps to 0.47% from 0.68%.
In value terms, the bank’s gross NPA has fallen from Rs 9,893 crore in the second quarter of FY24 to Rs 6,249 crore in the same period in FY25. In the first quarter, the gross NPA was Rs 6,649 crore. Net NPA at the end of the second quarter was Rs 1,059 crore compared to Rs 1,364 crore. NPA provisions have also come down from Rs 1,121 crore in the Q2 of FY24 to Rs 71 crore in the second quarter of the current financial year.
Provision coverage ratio improved to 97.06%, reflecting a rise of 30 bps. The bank’s capital adequacy ratio improved in the quarter to 17.45% against 17% in the same period previous year. It must be noted that the state-owned bank posted a 24.32% growth in net profit at Rs 777 crore in the September quarter.
Total business grew of 12.20% to Rs 5,40,801 crore, of which deposits grew 13.75% to Rs 3,10,652 crore and gross advances rose 10.16% to Rs 2,30,149 crore, the bank management told reporters in a post-earnings concall on Thursday. The low-cost Casa deposits grew 10.61% totalling Rs 1,31,856 crore, with a Casa ratio of 42.44% helping it improve the credit to deposit ratio to 74.09 for the quarter.
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.