IOB returns to profit with ₹213 cr. Q3 net

Public sector lender Indian Overseas Bank (IOB), which is gearing up to come out of the Prompt Corrective Action (PCA) soon, has reported a standalone net profit of ₹212.87 crore for the third quarter ended December against a loss of ₹6,075 crore in the year-earlier period.

“For the last four quarters, we have now been making profit consistently. When compared with Q3 performances of FY20, there is a marked improvement in all key parameters,” said P.P. Sengupta, MD & CEO. On the bank’s improved performance, he said it was due to its continuous focus on recovery, low cost deposits, treasury operations and less capital consuming advances. “Currently, the bank has a carry forward loss of ₹17,500 crore. Our aim is to recover at least ₹1,000 crore per quarter. In the first quarter of FY21, we recovered about ₹200 crore due to lockdown, followed by ₹760 crore and ₹1,055 crore respectively. Going forward, the focus will be on recovery in excess of ₹1,000 crore and it will add to our bottomline,” he said.

According to him, IOB has evolved a policy of not taking fresh exposures in stressed sectors, below hurdle rated accounts and BB and below rated accounts. IOB also exited from accounts in the stressed sectors, wherever feasible.

Gross non-perfoming assets (GNPA) fell 12.19% by ₹6,981 crore to ₹16,753 crore and stands at 12.19% against 17.12%, while net NPAs declined 3.13% to ₹3,905 crore, which was 3.13% against 5.81%. Provision Coverage Ratio improved to 91.91% from 86.20%.

Total business stood at ₹4,58,276 crore against ₹3,59,933 crore. CASA of the bank improved by 40.93% to ₹95,380 crore. lnterest income contracted to ₹4,244 crore from ₹4,352 crore and other income rose 82.36 % to ₹1,542.82 crore. Net lnterest Margin stood at 2.17%.

Stating that about ₹18,000 crore worth of NPAs were waiting for NCLT resolution, he said that about ₹3,000 crore of the assets were expected to be restructured.

On the capital requirement, Mr. Sengupta said that the board had given approval to raise up to ₹5,500 crore, though the lender needed only ₹3,000 crore. The timing of the issue will be decided at a later date.

You have reached your limit for free articles this month.

Subscription Benefits Include

Today’s Paper

Find mobile-friendly version of articles from the day’s newspaper in one easy-to-read list.

Unlimited Access

Enjoy reading as many articles as you wish without any limitations.

Personalised recommendations

A select list of articles that match your interests and tastes.

Faster pages

Move smoothly between articles as our pages load instantly.


A one-stop-shop for seeing the latest updates, and managing your preferences.


We brief you on the latest and most important developments, three times a day.

Support Quality Journalism.

*Our Digital Subscription plans do not currently include the e-paper, crossword and print.

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button