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Indian Overseas Bank has reported 18%
growth in net profit at Rs 650.07 crore for the quarter ended March 2023
(Q4FY2023). The bank has posted healthy 41% growth in net interest income
(NII), while Net Interest Margin (NIM) of the bank improved to 3.20% in
Q4FY2023 compared to 2.41% in the corresponding quarter of previous year.
On business front, the bank as has posted 8% growth
in business with strong 21% surge in loan book. The asset quality of the bank
was stable in Q4FY2023. Bank has substantially improved the credit to deposit
ratio to 72.4% at end March 2023 from 59.4% at end March 2022. Further, the
CASA ratio of the bank rose to 43.7% at end March 2023 from 43.4% at end March
2022.
Asset quality improves: The bank has continued to improve asset quality
in Q4FY2023.
The GNPA ratio has declined to 7.44% and NNPA
ratio dipped to 1.83% end March 2023
Provision coverage ratio increased to 92.63% at
end March 2023 compared to 91.34% a quarter ago and 91.66% a year ago.
The capital adequacy ratio of the bank stood at 16.1%
with Tier I ratio at 12.9% at end March 2023.
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Asset Quality
Indicators: Indian Overseas Bank
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|
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Mar-23
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Dec-22
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Sep-22
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Jun-22
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Mar-22
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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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14071.55
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14333.21
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14726.35
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14919.06
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15298.62
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-2
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-8
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Net NPA (Rs Crore)
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3266.01
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4000.35
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4148.60
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3698.12
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3824.62
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-18
|
-15
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% Gross NPA
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7.44
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8.19
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8.53
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9.12
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9.82
|
-75
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-238
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% Net NPA
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1.83
|
2.43
|
2.56
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2.43
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2.65
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-60
|
-82
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% PCR
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92.63
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91.34
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90.94
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91.86
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91.66
|
129
|
97
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% CRAR - Basel III
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16.10
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15.16
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15.14
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14.79
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13.83
|
94
|
227
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% CRAR - Tier I -
Basel III
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12.88
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12.66
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12.11
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11.75
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10.71
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22
|
217
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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:
Single digit business growth: The business of the bank has increased 8% YoY to
Rs 449892 crore end March 2023, driven by 21% surge in advances to Rs 189009 crore.
Deposits were flat at Rs 260883 crore at end March 2023.
CASA deposits ratio improves: The CASA deposits of the bank were flat at YoY at
Rs 114113 crore at end March 2023. The CASA ratio rose to 43.7% at end March
2023 compared to 43.4% at end March 2022, while declined from 44.5% a quarter
ago.
Investment
book of the bank declined -4%
YoY to Rs 94170 crore at end March 2023.
Book value of the bank stood at Rs 10.7 per share at end March 2023, while
the adjusted book value (net of NNPA and 25% of restructured advances) was Rs 8.5
per share at end March 2023.
Quarterly Performance
NII rises as NIM improves: Bank has recorded 23% increase in the interest
earned at Rs 5192.44 crore, while interest expenses increased 12% to Rs 2916.33
crore in Q4FY2023. NII improved 41% to Rs 2276.11 crore in the quarter ended
March 2023.
Non-interest income declines: Bank has posted 5% dip in the overall
non-interest income to Rs 1429.98 crore in the quarter ended March 2023.
Expenses ratio rises: The operating expenses of the bank increased 22%
to Rs 1824.41 crore, as other expenses moved up 32% to Rs 726.06 crore, while
employee expenses increased 16% to Rs 1098.35 crore in Q4FY2023. Cost to income
ratio rose to 49.2% in Q4FY2023 compared with 48.2% in Q4FY2022. Operating
Profit increased 17% to Rs 1881.68 crore.
Provisions and contingencies decline: The bank has showed -2% decline in provisions to
Rs 995.80 crore.
Effective tax rate increased to 26.6% in Q4FY2023 from 8.0% in Q4FY2022. Net
Profit rose by 18% YoY to Rs 650.07 crore during quarter ended March 2023.
Financial Performance FY2023:
Bank has posted 23% increase in net profit to Rs
2098.79 crore in the year ended March 2023 (FY2023). The net interest income
increased 31% to Rs 8254.89 crore, while non-interest income declined 16% to Rs
4108.75 crore. Net total income increased 10% to Rs 12363.64 crore in FY2023. The
operating expenses increased 18% to Rs 6421.46 crore, while provision and
contingencies fell 10% to Rs 3593.93 crore, allowing profit before tax to
increase 32% to Rs 2348.25 crore in FY2023. The cost-to-income ratio increased to
51.9% in FY2023 compared to 48.6% in FY2022. An effective tax rate rose to 10.6%
in FY2023 compared to 3.9% in FY2022. The net profit has increased 23% to Rs 2098.79
crore in FY2023.
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Indian Overseas Bank: Results
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Particulars
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2303 (3)
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2203 (3)
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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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5192.44
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4214.52
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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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2916.33
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2604.99
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12
|
11145.44
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10418.73
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7
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Net Interest Income
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2276.11
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1609.53
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41
|
8254.89
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6311.14
|
31
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Other Income
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1429.98
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1504.16
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-5
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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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3706.09
|
3113.69
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19
|
12363.64
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11214.16
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10
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Operating Expenses
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1824.41
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1499.37
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22
|
6421.46
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5451.25
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18
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Operating Profits
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1881.68
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1614.32
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17
|
5942.18
|
5762.91
|
3
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Provisions &
Contingencies
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995.80
|
1014.13
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-2
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3593.93
|
3983.85
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-10
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Profit Before Tax
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885.88
|
600.19
|
48
|
2348.25
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1779.06
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32
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Provision for tax
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235.81
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47.81
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393
|
249.46
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69.52
|
259
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PAT
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650.07
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552.38
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18
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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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1.4
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1.2
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1.1
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0.9
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Adj BV (Rs)
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8.5
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7.9
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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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