Indian Overseas Bank has reported 30% growth in net profit at Rs 722.58 crore
for the quarter ended December 2023 (Q3FY2024). The bank has posted healthy 6%
growth in net interest income (NII) in Q3FY2024. The Net Interest Margin (NIM)
of the bank was steady on sequential basis at 3.12% in Q3FY2024 while eased
from 3.27% in the corresponding quarter of previous year.
On business front, the
bank as has posted 14% growth in business with strong 23% surge in loan book.
The asset quality of the bank has continued to improve in Q3FY2024. Bank has
substantially improved the credit to deposit ratio to 77.7% at end December
2023 from 68.0% at end December 2022. The CASA ratio of the bank has eased
marginally to 43.5% at end December 2023 from 44.5% at end December 2022.
Asset quality improves: The bank has continued
to improve asset quality in Q3FY2024.
GNPA ratio declined to
3.90% and NNPA ratio also dipped to 0.62% end December 2023.
Provision coverage ratio
was strong at 96.85% at end December 2023 compared to 96.76% a quarter ago and
91.34% a year ago.
The capital adequacy
ratio of the bank stood at 16.8% with Tier I ratio at 14.0% at end December
2023.
Asset Quality
Indicators: Indian Overseas Bank
|
|
Dec/23
|
Sep/23
|
Jun/23
|
Mar/23
|
Dec/22
|
Variation
|
QoQ
|
YTD
|
YoY
|
Gross NPA (Rs Crore)
|
8440.83
|
9893.30
|
13628.98
|
14071.55
|
14333.21
|
-15
|
-40
|
-41
|
Net NPA (Rs Crore)
|
1302.58
|
1364.34
|
2589.97
|
3266.01
|
4000.35
|
-5
|
-60
|
-67
|
% Gross NPA
|
3.90
|
4.74
|
7.13
|
7.44
|
8.19
|
-84
|
-354
|
-429
|
% Net NPA
|
0.62
|
0.68
|
1.44
|
1.83
|
2.43
|
-6
|
-121
|
-181
|
% PCR
|
96.85
|
96.76
|
94.03
|
92.63
|
91.34
|
9
|
422
|
551
|
% CRAR - Basel III
|
16.80
|
17.00
|
16.56
|
16.10
|
15.16
|
-20
|
70
|
164
|
% CRAR - Tier I -
Basel III
|
13.95
|
13.81
|
13.34
|
12.88
|
12.66
|
14
|
107
|
129
|
Variation in basis
points for figures given in percentages and in % for figures in Rs crore
|
Business Highlights:
Healthy business growth:
The business of the bank
has increased 14% YoY to Rs 494209 crore end December 2023, driven by 23% surge
in advances to Rs 216163 crore. Deposits rose 8% to Rs 278046 crore at end
December 2023.
Healthy CASA deposits
ratio: The
CASA deposits of the bank rose 6% YoY to Rs 120915 crore at end December 2023.
The CASA ratio eased marginally to 43.5% at end December 2023 compared to 44.5%
at end December 2022, while moderated from 43.7% a quarter ago. The term
deposits have increased 10% to Rs 157131 crore end December 2023.
Investment book of the bank rose 4% YoY to Rs 100205 crore at end December 2023.
Margins eases: The bank has showed 72
bps YoY jump in cost of deposits to 4.82%, while yield on advances increased 45
bps YoY to 8.88% in Q3FY2024. Thus, the NIM has declined -15 bps YoY to 3.12%.
Book value of the bank stood at Rs
12.9 per share at end December 2023, while the adjusted book value (net of NNPA
and 25% of restructured advances) was Rs 12.2 per share at end December 2023.
Quarterly Performance
Moderate growth in NII: Bank has recorded 22%
increase in the interest earned at Rs 6175.51 crore, while interest expenses
increased 36% to Rs 3777.87 crore in Q3FY2024. NII improved 6% to Rs 2397.64
crore in the quarter ended December 2023.
Healthy growth in non-interest
income: Bank
has posted 33% jump in the overall non-interest income to Rs 1261.67 crore in
the quarter ended December 2023.
Expenses ratio improves:
The operating expenses
of the bank increased 12% to Rs 1879.09 crore, as other expenses moved up 6% to
Rs 609.88 crore, while employee expenses increased 15% to Rs 1269.21 crore in
Q3FY2024. Cost to income ratio declined to 51.4% in Q3FY2024 compared with
52.2% in Q3FY2023, helping the Operating Profit to increase 16% to Rs 1780.22
crore.
Provisions and
contingencies decline: The bank has showed -28% decline in provisions to Rs 701.42 crore.
Effective tax rate jumped to 33.0% in Q3FY2024 from 0.9% in Q3FY2023. Net Profit rose by 30%
YoY to Rs 722.58 crore during quarter ended December 2023.
Financial Performance
9MFY2024:
Bank has posted 28%
increase in net profit to Rs 1847.52 crore in the nine month ended December
2023 (9MFY2024). The net interest income increased 18% to Rs 7066.33 crore,
while non-interest income moved up 19% to Rs 3178.89 crore, pushing up net
total income by 18% to Rs 10245.22 crore in 9MFY2024. The operating expenses
increased 18% to Rs 5442.56 crore, while provision and contingencies declined -1%
to Rs 2583.57 crore, allowing profit before tax to increase 52% to Rs 2219.09
crore in 9MFY2024. The cost-to-income ratio was steady at 53.1% in 9MFY2024
compared to 53.1% in 9MFY2023. An effective tax rate surged to 16.7% in
9MFY2024 compared to 0.9% in 9MFY2023. The net profit has increased 28% to Rs
1847.52 crore in 9MFY2024.
Indian Overseas Bank: Results
|
Particulars
|
2312 (3)
|
2212 (3)
|
Var %
|
2312 (9)
|
2212 (9)
|
Var %
|
2303 (12)
|
2203 (12)
|
Var %
|
Interest Earned
|
6175.51
|
5055.53
|
22
|
17420.84
|
14207.89
|
23
|
19400.33
|
16729.87
|
16
|
Interest Expended
|
3777.87
|
2783.87
|
36
|
10354.51
|
8229.11
|
26
|
11145.44
|
10418.73
|
7
|
Net Interest Income
|
2397.64
|
2271.66
|
6
|
7066.33
|
5978.78
|
18
|
8254.89
|
6311.14
|
31
|
Other Income
|
1261.67
|
950.48
|
33
|
3178.89
|
2678.77
|
19
|
4108.75
|
4903.02
|
-16
|
Net Total Income
|
3659.31
|
3222.14
|
14
|
10245.22
|
8657.55
|
18
|
12363.64
|
11214.16
|
10
|
Operating Expenses
|
1879.09
|
1682.20
|
12
|
5442.56
|
4597.06
|
18
|
6421.46
|
5451.25
|
18
|
Operating Profits
|
1780.22
|
1539.94
|
16
|
4802.66
|
4060.49
|
18
|
5942.18
|
5762.91
|
3
|
Provisions &
Contingencies
|
701.42
|
979.50
|
-28
|
2583.57
|
2598.12
|
-1
|
3593.93
|
3983.85
|
-10
|
Profit Before Tax
|
1078.80
|
560.44
|
92
|
2219.09
|
1462.37
|
52
|
2348.25
|
1779.06
|
32
|
Provision for tax
|
356.22
|
5.25
|
6685
|
371.57
|
13.66
|
2620
|
249.46
|
69.52
|
259
|
PAT
|
722.58
|
555.19
|
30
|
1847.52
|
1448.71
|
28
|
2098.79
|
1709.54
|
23
|
EPS*(Rs)
|
1.5
|
1.2
|
|
1.3
|
1.0
|
|
1.1
|
0.9
|
|
Adj BV (Rs)
|
12.2
|
8.8
|
|
12.2
|
8.8
|
|
8.5
|
7.9
|
|
* Annualized on current equity of
Rs 18902.41 crore. Face Value: Rs 10, Figures in Rs crore
|
Source: Capitaline Corporate
Database
|
|