New Delhi: State-owned Indian Overseas Bank (IOB) on Friday reported a 30 per cent rise in net profit to Rs 1,051 crore for the March quarter, helped by a decline in bad loans and a rise in interest income.
The Chennai-based lender had earned a net profit of Rs 808 crore in the year-ago period.During the quarter, the bank’s total income increased to Rs 9,215 crore, as against Rs 9,106 crore a year ago, Indian Overseas Bank said in a regulatory filing.Interest income grew to Rs 7,634 crore during the period under review, from Rs 6,629 crore in the corresponding quarter a year ago.
The board of the bank approved raising of capital up to an extent of Rs 5,000 crore via a mix of equity and bonds.Out of this, the board plans to mobilise up to Rs 4,000 crore by way of follow-on public offer, rights issue, qualified institutional placement or any other mode or combination in one or more tranches during FY 2025-26.This is subject to obtaining the approval of shareholders through Annual General Meeting (AGM)/Extraordinary General Meeting (EGM) and other statutory/regulatory approvals, it added.
On the asset quality front, the bank’s gross Non-Performing Assets (NPAs) moderated to 2.14 per cent of gross advances, as compared to 3.10 per cent by the end of March 2024.Similarly, Net NPAs also came down to 0.37 per cent of the advances, over 0.57 per cent at the end of 2024.
As a result, total provision during the quarter eased to Rs 200 crore, as against Rs 409 crore in the same quarter a year ago.The bank’s capital adequacy ratio rose to 19.74 per cent, from 17.28 per cent at the end of FY’24.For the entire financial year 2024-25, the bank reported a 26 per cent increase in its profit at Rs 3,335 crore, as against Rs 2,656 crore in the previous year.The bank’s total income during the financial year rose to Rs 33,676 crore, as against Rs 29,706 crore a year ago.
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