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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.
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Asset Quality
Indicators: Indian Overseas Bank
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|
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Dec/23
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Sep/23
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Jun/23
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Mar/23
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Dec/22
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Variation
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|
QoQ
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YTD
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YoY
|
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Gross NPA (Rs Crore)
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8440.83
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9893.30
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13628.98
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14071.55
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14333.21
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-15
|
-40
|
-41
|
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Net NPA (Rs Crore)
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1302.58
|
1364.34
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2589.97
|
3266.01
|
4000.35
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-5
|
-60
|
-67
|
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% Gross NPA
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3.90
|
4.74
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7.13
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7.44
|
8.19
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-84
|
-354
|
-429
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% Net NPA
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0.62
|
0.68
|
1.44
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1.83
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2.43
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-6
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-121
|
-181
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% PCR
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96.85
|
96.76
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94.03
|
92.63
|
91.34
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9
|
422
|
551
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% CRAR - Basel III
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16.80
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17.00
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16.56
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16.10
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15.16
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-20
|
70
|
164
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% CRAR - Tier I -
Basel III
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13.95
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13.81
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13.34
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12.88
|
12.66
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14
|
107
|
129
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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:
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.
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Indian Overseas Bank: Results
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Particulars
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2312 (3)
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2212 (3)
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Var %
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2312 (9)
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2212 (9)
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Var %
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2303 (12)
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2203 (12)
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Var %
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Interest Earned
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6175.51
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5055.53
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22
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17420.84
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14207.89
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23
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19400.33
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16729.87
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16
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Interest Expended
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3777.87
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2783.87
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36
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10354.51
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8229.11
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26
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11145.44
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10418.73
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7
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Net Interest Income
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2397.64
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2271.66
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6
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7066.33
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5978.78
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18
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8254.89
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6311.14
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31
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Other Income
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1261.67
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950.48
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33
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3178.89
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2678.77
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19
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4108.75
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4903.02
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-16
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Net Total Income
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3659.31
|
3222.14
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14
|
10245.22
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8657.55
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18
|
12363.64
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11214.16
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10
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Operating Expenses
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1879.09
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1682.20
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12
|
5442.56
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4597.06
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18
|
6421.46
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5451.25
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18
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Operating Profits
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1780.22
|
1539.94
|
16
|
4802.66
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4060.49
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18
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5942.18
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5762.91
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3
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Provisions &
Contingencies
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701.42
|
979.50
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-28
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2583.57
|
2598.12
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-1
|
3593.93
|
3983.85
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-10
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Profit Before Tax
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1078.80
|
560.44
|
92
|
2219.09
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1462.37
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52
|
2348.25
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1779.06
|
32
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Provision for tax
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356.22
|
5.25
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6685
|
371.57
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13.66
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2620
|
249.46
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69.52
|
259
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PAT
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722.58
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555.19
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30
|
1847.52
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1448.71
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28
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2098.79
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1709.54
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23
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EPS*(Rs)
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1.5
|
1.2
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1.3
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1.0
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1.1
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0.9
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Adj BV (Rs)
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12.2
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8.8
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12.2
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8.8
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8.5
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7.9
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* Annualized on current equity of
Rs 18902.41 crore. Face Value: Rs 10, Figures in Rs crore
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Source: Capitaline Corporate
Database
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