|
Indian Overseas Bank has reported 22% growth in net profit at Rs 555.19 crore for
the quarter ended December 2022 (Q3FY2023). The bank has posted healthy 44% growth
in net interest income (NII), while the non interest income of the bank declined
15% in Q3FY2023. The Net Interest Margin (NIM) of the bank improved to 3.27% in
Q3FY2023 compared to 2.40% in the corresponding quarter of previous year.
On business front, the bank as has posted 9% growth
in business with strong 18% surge in loan book. The asset quality of the bank has
improved in Q3FY2023. Bank has substantially improved the credit to deposit
ratio to 68.0% at end December 2022 from 60.0% at end December 2021. However,
the CASA ratio of the bank has declined to 44.5% at end December 2022 from 42.5%
at end December 2021.
Asset quality improves: The bank has improved asset quality in Q3FY2023.
GNPA ratio declined to 8.19% and NNPA ratio fell
to 2.43% end December 2022.
Provision coverage ratio was steady at 91.34% at
end December 2022 compared to 90.94% a quarter ago and 92.33% a year ago.
The capital adequacy ratio of the bank stood at 15.2%
with Tier I ratio at 12.7% at end December 2022.
|
Asset Quality
Indicators: Indian Overseas Bank
|
|
|
Dec-22
|
Sep-22
|
Jun-22
|
Mar-22
|
Dec-21
|
Variation
|
|
QoQ
|
YTD
|
YoY
|
|
Gross NPA (Rs Crore)
|
14333.21
|
14726.35
|
14919.06
|
15298.62
|
15426.55
|
-3
|
-6
|
-7
|
|
Net NPA (Rs Crore)
|
4000.35
|
4148.60
|
3698.12
|
3824.62
|
3586.83
|
-4
|
5
|
12
|
|
% Gross NPA
|
8.19
|
8.53
|
9.12
|
9.82
|
10.40
|
-34
|
-163
|
-221
|
|
% Net NPA
|
2.43
|
2.56
|
2.43
|
2.65
|
2.63
|
-13
|
-22
|
-20
|
|
% PCR
|
91.34
|
90.94
|
91.86
|
91.66
|
92.33
|
40
|
-32
|
-99
|
|
% CRAR - Basel III
|
15.16
|
15.14
|
14.79
|
13.83
|
15.41
|
2
|
133
|
-25
|
|
% CRAR - Tier I -
Basel III
|
12.66
|
12.11
|
11.75
|
10.71
|
12.94
|
55
|
195
|
-28
|
|
Variation in basis points
for figures given in percentages and in % for figures in Rs crore
|
Business Highlights:
Strong loan growth driving business growth: The business of the bank has increased 9% YoY to
Rs 432530 crore end December 2022, driven by 18% surge in advances to Rs 175050
crore. Deposits rose 4% to Rs 257480 crore at end December 2022.
CASA deposits ratio improves: The CASA deposits of the bank increased 9% YoY
to Rs 114591 crore at end December 2022. The CASA ratio improved to 44.5% at
end December 2022 compared to 42.5% at end December 2021 and 42.8% a quarter
ago.
Investment
book of the bank was flat YoY
to Rs 94388 crore at end December 2022.
Book value of the bank stood at Rs 11.6 per share at end December 2022, while
the adjusted book value (net of NNPA and 25% of restructured advances) was Rs 8.8
per share at end December 2022.
Quarterly Performance
NII rises as NIM improves: Bank has recorded 20% increase in the interest
earned at Rs 5055.53 crore, while interest expenses increased 6% to Rs 2783.87 crore
in Q3FY2023. NII improved 44% to Rs 2271.66 crore in the quarter ended December
2022.
Non-interest income declines: Bank has posted 15% dip in the overall
non-interest income to Rs 950.48 crore in the quarter ended December 2022.
Expenses ratio rises: The operating expenses of the bank increased 37%
to Rs 1682.21 crore, as other expenses moved up 20% to Rs 575.08 crore, while
employee expenses jumped 48% to Rs 1107.13 crore in Q3FY2023. Cost to income
ratio jumped to 52.2% in Q3FY2023 compared with 45.7% in Q3FY2022, helping the
Operating Profit to increase 5% to Rs 1539.93 crore.
Provisions and contingencies decline: The bank has showed -2% decline in provisions to
Rs 979.50 crore.
Effective tax rate declined to 0.9% in Q3FY2023 from 1.7% in Q3FY2022. Net
Profit rose by 22% YoY to Rs 555.19 crore during quarter ended December 2022.
Financial Performance 9MFY2023:
Bank has posted 25% increase in net profit to Rs
1448.71 crore in the nine months ended December 2022 (9MFY2023). The net
interest income increased 27% to Rs 5978.78 crore, while non-interest income declined
23% to Rs 2678.77 crore. The net total income rose 6% to Rs 8657.55 crore in
9MFY2023. The operating expenses increased 16% to Rs 4597.07 crore, while provision
and contingencies declined -15% to Rs 2598.12 crore, allowing profit before tax
to increase 24% to Rs 1462.36 crore in 9MFY2023. The cost-to-income ratio jumped
to 53.1% in 9MFY2023 compared to 48.2% in 9MFY2022. An effective tax rate
declined to 0.9% in 9MFY2023 compared to 1.8% in 9MFY2022. The net profit has
increased 25% to Rs 1448.71 crore in 9MFY2023.
|
Indian Overseas Bank: Results
|
|
Particulars
|
2212 (3)
|
2112 (3)
|
Var %
|
2212 (9)
|
2112 (9)
|
Var %
|
2203 (12)
|
2103 (12)
|
Var %
|
|
Interest Earned
|
5055.53
|
4197.69
|
20
|
14207.89
|
12515.35
|
14
|
16729.87
|
16965.53
|
-1
|
|
Interest Expended
|
2783.87
|
2625.58
|
6
|
8229.11
|
7813.74
|
5
|
10418.73
|
11067.03
|
-6
|
|
Net Interest Income
|
2271.66
|
1572.11
|
44
|
5978.78
|
4701.61
|
27
|
6311.14
|
5898.50
|
7
|
|
Other Income
|
950.48
|
1119.51
|
-15
|
2678.77
|
3497.13
|
-23
|
4903.02
|
5559.02
|
-12
|
|
Net Total Income
|
3222.14
|
2691.62
|
20
|
8657.55
|
8198.74
|
6
|
11214.16
|
11457.52
|
-2
|
|
Operating Expenses
|
1682.21
|
1230.65
|
37
|
4597.07
|
3951.88
|
16
|
5451.25
|
5561.72
|
-2
|
|
Operating Profits
|
1539.93
|
1460.97
|
5
|
4060.48
|
4246.86
|
-4
|
5762.91
|
5895.80
|
-2
|
|
Provisions &
Contingencies
|
979.50
|
998.93
|
-2
|
2598.12
|
3067.99
|
-15
|
3983.85
|
5056.09
|
-21
|
|
Profit Before Tax
|
560.43
|
462.04
|
21
|
1462.36
|
1178.87
|
24
|
1779.06
|
839.71
|
112
|
|
Provision for tax
|
5.24
|
7.93
|
-34
|
13.65
|
21.71
|
-37
|
69.52
|
8.24
|
744
|
|
PAT
|
555.19
|
454.11
|
22
|
1448.71
|
1157.16
|
25
|
1709.54
|
831.47
|
106
|
|
EPS*(Rs)
|
1.2
|
1.0
|
|
1.0
|
0.8
|
|
0.9
|
0.4
|
|
|
Adj BV (Rs)
|
8.8
|
7.9
|
|
8.8
|
7.9
|
|
7.9
|
5.9
|
|
|
* Annualized on current equity of
Rs 18902.41 crore. Face Value: Rs 10, Figures in Rs crore
|
|
Source: Capitaline Corporate
Database
|
|