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Indian
Overseas Bank has continued to post strong growth in the net profit at 58% to
Rs 552.38 crore in the quarter ended March 2022 (Q4FY2022).
Interest income has increased 3.87% to Rs 4,214.52
crore. Interest expense fell 1.86% to Rs 2,604.99
crore. Hence net interest income rose 14.70% to Rs 1,609.53
crore. With other income showing a fall of 25.40% to Rs 1504.16
crore, net total income decreased 8.94% Rs 3,113.69 crore.
Operating expenses fell 11.57% to Rs 1499.37
crore. As a result, profit before provisions fell 6.37% to Rs
1614.32 crore. Provisions & Contingencies decreased 26.54% to Rs
1014.13 crore, leading to Profit before tax reported profit of Rs
600.19 crore compared to Profit of Rs 343.65 crore.
There were no extraordinary items. PBT after EO
reported profit of Rs 600.19 crore compared to Profit of Rs 343.65
crore. Provision for tax was debit of Rs 47.81 crore, compared to
credit of Rs 6.12 crore. Net profit rose 57.93% to Rs 552.38
crore.
Asset quality stable
GNPA reduced from 11.69% end March 2021 to 9.82% end March
2022. NNPA reduced from 3.58% end March 2021 to 2.65% end March 2022
Net NPA has stood at 2.65% which is within prescribed RBI
guidelines.
During the quarter GNPA reduced by Rs 127 crore. GNPA
ratio reduced to 9.82% from 10.40% qoq
Recovery in NPA accounts for FY2022 is Rs 1385.82 crore.
Provision Coverage Ratio (PCR) improved from 90.34% end
March 2021 to 91.66% end March 2022.
Capital adequacy ratio moved from 15.32% as on 31 March 2021
and 15.41% as on 31 December 2021 to 13.83% as on 31 March 2022
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Asset Quality
Indicators: Indian Overseas Bank
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Mar-22
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Dec-21
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Sep-21
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Jun-21
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Mar-21
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Variation
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QoQ
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YoY
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Gross NPA (Rs Crore)
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15298.62
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15426.55
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15665.69
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15952.10
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16323.18
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-1
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-6
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Net NPA (Rs Crore)
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3824.62
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3586.83
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3741.21
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3998.21
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4577.59
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7
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-16
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% Gross NPA
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9.82
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10.40
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10.66
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11.48
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11.69
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-58
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-187
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% Net NPA
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2.65
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2.63
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2.77
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3.15
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3.58
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2
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-93
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% Provision Coverage
Ratio
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91.66
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92.33
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92.00
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91.56
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90.34
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-67
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132
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% CRAR - Basel III
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13.83
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15.41
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15.41
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15.48
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15.32
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-158
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-149
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% CRAR - Tier I Basel
III
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10.71
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12.94
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12.84
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12.96
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12.91
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-223
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-220
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Variation in basis
points for figures given in percentages and in % for figures in Rs crore
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Business
highlights
Total business stood of Rs 417960 crore end March 2022 as
against Rs 379885 crore end March 2021
Total deposits increased to Rs 262159 crore end March
2022 as against Rs 240288 crore end March 2021. The Bank has reduced the
concentration of bulk deposits and high cost despoils and increased retail term
deposits to have a stable and sustainable deposit profile and reduce the cost
of funds.
CASA of the Bonk improved to 43.44% end March 2022 as against
42.52% end March 2021. Total CASA has increased from Rs 102165 crore end March 2021
to Rs113877 crore end March 2022, recording growth of 11.46%.
Gross Advances stood at Rs 155801 crore end March 2022 as
against Rs 139597 crore end March 2022. The Bonk has evolved a policy of not
taking fresh exposures in stressed sectors, below hurdle rated accounts and BB and
below rated accounts. The Bonk has also exited from accounts in the stressed
sectors, wherever feasible.
Book value
per share of the bank stood at Rs 10.7 per share at end March 2022. The
adjusted book value accounting for NNPA and 25% of restructured loans stood at
Rs 7.9 per share at end March 2022.
Financial Performance FY2022
Indian Overseas Bank Interest income has declined 1.39% to
Rs 16,729.87 crore. Interest expense fell 5.86% to Rs 10,418.73
crore. Hence net interest income rose 7% to Rs 6,311.14
crore.
With other income showing a fall of 11.80% to Rs 4903.02
crore, net total income decreased 2.12% Rs 11,214.16
crore. Operating expenses fell 1.99% to Rs 5451.25
crore. As a result, profit before provisions fell 2.25% to Rs
5762.91 crore. Provisions & Contingencies decreased 21.21% to Rs
3983.85 crore, leading to Profit before tax reported profit of Rs
1,779.06 crore compared to Profit of Rs 839.71 crore.
There were no extraordinary items. PBT after EO reported
profit of Rs 1,779.06 crore compared to Profit of Rs 839.71
crore. Provision for tax was expense of Rs 69.52 crore, compared to
Rs 8.24 crore. Net profit rose 105.60% to Rs 1,709.54
crore.
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Indian Overseas Bank: Results
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Particulars
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2203 (3)
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2103 (3)
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Var %
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2203 (12)
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2103 (12)
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Var %
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Interest Earned
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4214.52
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4057.43
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4
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16729.87
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16965.53
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-1
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Interest Expended
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2604.99
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2654.23
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-2
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10418.73
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11067.03
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-6
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Net Interest Income
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1609.53
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1403.20
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15
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6311.14
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5898.50
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7
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Other Income
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1504.16
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2016.37
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-25
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4753.02
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5409.02
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-12
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Net Total Income
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3113.69
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3419.57
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-9
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11064.16
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11307.52
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-2
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Operating Expenses
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1499.37
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1695.46
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-12
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5451.25
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5561.72
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-2
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Operating Profits
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1614.32
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1724.11
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-6
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5612.91
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5745.80
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-2
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Provisions & Contingencies
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1014.13
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1380.46
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-27
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3833.85
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4906.09
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-22
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Profit Before Tax
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600.19
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343.65
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75
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1779.06
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839.71
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112
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Provision for Tax
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47.81
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-6.12
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-881
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69.52
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8.24
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744
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PAT
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552.38
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349.77
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58
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1709.54
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831.47
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106
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EPS*(Rs)
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1.2
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0.7
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0.9
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0.4
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Adj BV (Rs)
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7.9
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5.9
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7.9
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5.9
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* Annualized on current equity of
Rs 18902.41 crore. Face Value: Rs 10, Figures in Rs crore, PL: Profit to Loss
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Source: Capitaline Corporate
Database
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