Indian Overseas Bank’s Financial Performance in Q2 2023-24

Indian Overseas Bank (IOB) has reported its financial results for the second quarter of the fiscal year 2023-24, showcasing significant figures in its income and profitability.

Total Income and Net Profit

According to a regulatory filing by IOB, the bank recorded a total income of Rs 6,935.21 crore for the quarter ending September 30, 2023, marking a notable increase from Rs 5,852.45 crore in the same period of the previous fiscal year. The net profit for the quarter stood at approximately Rs 624.58 crore, reflecting an improvement from Rs 501.34 crore recorded in the corresponding period last year.

Interest Income and Non-Interest Income

IOB reported interest income of Rs 5,821 crore for the quarter ending September 30, 2023, compared to Rs 4,718 crore for the same period in the previous fiscal year. However, the non-interest income slightly declined to Rs 1,114 crore for the year ending September 30, 2023, from Rs 1,135 crore in the previous fiscal year.

Asset Quality

The bank disclosed its gross non-performing assets (GNPA) and net non-performing assets (NNPA) as of September 30, 2023. The GNPA stood at Rs 9,893.30 crore, showcasing a decrease from Rs 14,726.35 crore reported in the same period last year. Similarly, the NNPA decreased to Rs 1,364.34 crore from Rs 4,148.60 crore in the corresponding period.

Provisioning for NPAs

IOB increased its provisioning for non-performing assets (NPA) during the period under review. The bank allocated Rs 1,120.50 crore towards NPA provisioning, compared to Rs 627.15 crore provided during the same period in the previous fiscal year.

Capital Adequacy Ratio

IOB’s capital adequacy ratio, a measure of its capital strength and ability to absorb losses, stood at 17 per cent as of September 30, 2023.

Conclusion

Indian Overseas Bank’s financial performance in the second quarter of the fiscal year 2023-24 reflects positive growth in total income and net profit. Despite challenges in asset quality, the bank has made strides in reducing non-performing assets and maintaining a healthy capital adequacy ratio. Moving forward, IOB aims to sustain its growth momentum and enhance its financial stability through strategic initiatives and prudent risk management practices.