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Indian Overseas Bank has
recorded 20% increase in the net profit to Rs 392.18 crore in the quarter ended
June 2022 (Q1FY2023). Interest income has increased 9.14% to Rs 4,434.74 crore.
Interest expense rose 4.46% to Rs 2680.99 crore. Hence net interest income rose
17.19% to Rs 1,753.75 crore.
With other income showing a
fall of 45.65% to Rs 593.46 crore, net total income decreased 9.32% Rs 2,347.21
crore. Operating expenses fell 4.74% to Rs 1320.84 crore. As a result, profit
before provisions fell 14.60% to Rs 1026.37 crore. Provisions &
Contingencies decreased 27.37% to Rs 630.4 crore, leading to Profit before tax
reported profit of Rs 395.97 crore compared to Profit of Rs 333.86 crore.
There were no extraordinary
items. PBT after EO reported profit of Rs 395.97 crore compared to Profit of Rs
333.86 crore. Provision for tax was expense of Rs 3.79 crore, compared to Rs
7.22 crore. Net profit rose 20.06% to Rs 392.18 crore.
Asset quality stable
Gross non-performing assets
moved from Rs 15952.10 crore end June 2021 and Rs 15298.62 crore end March 2022
to Rs 14919.06 crore end June 2022.
Gross NPA % which stood at
11.48% end June 2021 and Rs 9.82% end March 2022 stood at 9.12% end June 2022.
Net non-performing assets
moved from Rs 3998.21 crore end June 2021 and Rs 3824.62 crore end March 2022
to Rs 3698.12 crore end June 2022.
Net NPA % which stood at
3.15% end June 2021 and 2.65% end March 2022 stood at 2.43% end June 2022.
Provision Coverage Ratio is improved
to 91.86% end June 2022 as against 91.56% end June 2021.
Capital adequacy ratio moved
from 15.48% end June 2021 and 13.83% end March 2022 to 14.79% end June 2022.
Provision Coverage Ratio (PCR) improved from 91.86% end
June 2021 from 91.66% end March 2022.
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Asset Quality
Indicators: Indian Overseas Bank
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Jun-22
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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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Variation
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QoQ
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YoY
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Gross NPA (Rs Crore)
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14919.06
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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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-2
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-6
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Net NPA (Rs Crore)
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3698.12
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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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-3
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-8
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% Gross NPA
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9.12
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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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-70
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-236
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% Net NPA
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2.43
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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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-22
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-72
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% Provision Coverage
Ratio
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91.86
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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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20
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30
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% CRAR - Basel III
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14.79
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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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96
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-69
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% CRAR - Tier I Basel
III
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11.75
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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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104
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-121
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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 increased to
Rs 423589 crore end June 2022 as against Rs 381885 crore end June 2021.
Total deposits increased to
Rs 260045 crore end June 2022 as against Rs 242941 crore end June 2021.
CASA of the Bonk improved to
43.07% end June 2022 from 41.63% end June 2021. Total CASA has increased from Rs
101129 crore end June 2021 to Rs 112012 crore as on 30.06.2022.
Gross Advances increased to
Rs 163544 crore as on 30tn June 2022 as against Rs 138944 crore end June 2021. The
Bonk has evolved o 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 due to improve the quality of asset.
Average cost of Deposit is 4.04%
end June 2022 as against 4.26% end June 2021.
Average Yield on Advances stood
at 7.34% end June 2022 as against 7.57% end June 2021.
Net interest margin stood of
2.53% for quarter ended June 2022.
Book value
per share of the bank stood at Rs 10.7 per share at end June 2022. The adjusted
book value accounting for NNPA and 25% of restructured loans stood at Rs 8.1
per share at end June 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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2206 (3)
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2106 (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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4434.74
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4063.17
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9
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16965.53
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17406.11
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-3
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Interest Expended
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2680.99
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2566.61
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4
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11067.03
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12103.28
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-9
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Net Interest Income
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1753.75
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1496.56
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17
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5898.50
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5302.83
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11
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Other Income
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593.46
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1091.86
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-46
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5409.02
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3209.68
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69
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Net Total Income
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2347.21
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2588.42
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-9
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11307.52
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8512.51
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33
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Operating Expenses
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1320.84
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1386.56
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-5
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5561.72
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5128.83
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8
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Operating Profits
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1026.37
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1201.86
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-15
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5745.80
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3383.68
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70
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Provisions & Contingencies
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630.40
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868.00
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-27
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4906.09
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11728.16
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-58
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Profit Before Tax
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395.97
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333.86
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19
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839.71
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-8344.48
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-110
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Provision for Tax
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3.79
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7.22
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-48
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8.24
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182.92
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-95
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PAT
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392.18
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326.64
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20
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831.47
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-8527.40
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-110
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EPS*(Rs)
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0.8
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0.7
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0.4
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-4.5
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Adj BV (Rs)
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8.1
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8.0
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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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