On Wednesday, a major Indian nationalised bank, Indian Overseas Bank (IOB) reported a 113 per cent hop in its standalone profit at Rs 454 crore in the third quarter which was aided by lower provisions and higher cash recovery.
In FY21, the bank had reported a net profit of Rs 832 crore. Interest income subsequently dwindled to Rs 4,198 crore during the third quarter ended December 31, 2021, against Rs 4,244 crore last year.
“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 Managing Director and CEO Partha Pratim Sengupta.
Its COVID-19 restructured book stood at Rs 5,500 crore. Provisions sank to Rs 1,073 crore from Rs 1,518 crore in the year-ago period. The provision coverage ratio (PCR) enhanced to 92.33 per cent as against 91.91 per cent.
The bank is targeting for the net profit to adjoin around Rs 1,600 crore in the current financial year which came out of the RBI’s instantaneous curative action (PCA) framework in September 2021. The bank retrieved Rs 1,200 crore in the December quarter when fresh slippages were at Rs 1,254 crore, along with Rs 650 crore of adjustment against the earlier divagation in acquisition variety.
The total cash convalescence stood at Rs 1,199.51 crore which incorporates a recovery of Rs 247.37 crore. Its gross non-performing assets (GNPAs) lowered to 10.45 per cent, against 12.19 per cent a year ago.
On 5 December 2021, IOB got Degidhan Award 2020-21 by the Ministry of Electronics & Information Technology for achieving the second-highest percentage of digital payment transactions among public sector banks. As of 31 March 2021, IOB’s total business stands at ₹379,885 crores (US$50 billion).