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Indian Overseas Bank has reported 28%
growth in net profit at Rs 500.35 crore for the quarter ended June 2023
(Q1FY2024). The bank has posted healthy 32% growth in net interest income (NII).
The Net Interest Margin (NIM) of the bank improved to 3.21% in Q1FY2024
compared to 2.53% in the corresponding quarter of previous year.
On business front, the bank as has posted 8% growth
in business with strong 17% surge in loan book. The asset quality of the bank has
continued to improve in Q1FY2024. Bank has substantially improved the credit to
deposit ratio to 72.3% at end June 2023 from 62.9% at end June 2022. CASA ratio
of the bank has also improved to 44.1% at end June 2023 from 43.1% at end June
2022.
Asset quality improves: The bank has further improved asset quality in
Q1FY2024.
GNPA ratio declined to 7.13% and NNPA ratio
dipped to 1.44% end June 2023.
Provision coverage ratio was steady at 94.03% at
end June 2023 compared to 92.63% a quarter ago and 91.86% a year ago.
The capital adequacy ratio of the bank stood at 16.6%
with Tier I ratio at 13.3% at end June 2023.
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Asset Quality
Indicators: Indian Overseas Bank
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|
|
Jun-23
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Mar-23
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Dec-22
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Sep-22
|
Jun-22
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Variation
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|
QoQ
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YoY
|
|
Gross NPA (Rs Crore)
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13628.98
|
14071.55
|
14333.21
|
14726.35
|
14919.06
|
-3
|
-9
|
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Net NPA (Rs Crore)
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2589.97
|
3266.01
|
4000.35
|
4148.60
|
3698.12
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-21
|
-30
|
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% Gross NPA
|
7.13
|
7.44
|
8.19
|
8.53
|
9.12
|
-31
|
-199
|
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% Net NPA
|
1.44
|
1.83
|
2.43
|
2.56
|
2.43
|
-39
|
-99
|
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% PCR
|
94.03
|
92.63
|
91.34
|
90.94
|
91.86
|
140
|
217
|
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% CRAR - Basel III
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16.56
|
16.10
|
15.16
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15.14
|
14.79
|
46
|
177
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% CRAR - Tier I -
Basel III
|
13.34
|
12.88
|
12.66
|
12.11
|
11.75
|
46
|
159
|
|
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 8% YoY to
Rs 455664 crore end June 2023, driven by 17% surge in advances to Rs 191263 crore.
Deposits rose 2% to Rs 264401 crore at end June 2023.
CASA deposits ratio improves: The CASA deposits of the bank rose 4% YoY to Rs 116694
crore at end June 2023. The CASA ratio rose to 44.1% at end June 2023 compared
to 43.1% at end June 2022, while improved from 43.7% a quarter ago. The term
deposits have declined -1% to Rs 147707 crore end June 2023.
Investment
book of the bank declined -6%
YoY to Rs 95328 crore at end June 2023.
Margins improve: NIM has improved 68 bps YoY to 3.21%.
Book value of the bank stood at Rs 11.0 per share at end June 2023, while the
adjusted book value (net of NNPA and 25% of restructured advances) was Rs 9.2 per
share at end June 2023.
Quarterly Performance
NII rises as NIM improves: Bank has recorded 22% increase in the interest
earned at Rs 5424.31 crore, while interest expenses increased 16% to Rs 3101.50
crore in Q1FY2024. NII improved 32% to Rs 2322.81 crore in the quarter ended
June 2023.
Healthy growth in non-interest income: Bank has posted strong 35% jump in the overall
non-interest income to Rs 803.03 crore in the quarter ended June 2023.
Expenses ratio rises: The operating expenses of the bank increased 35%
to Rs 1780.52 crore, as other expenses moved up 20% to Rs 565.05 crore, while
employee expenses increased 43% to Rs 1215.47 crore in Q1FY2024. Cost to income
ratio rose to 57.0% in Q1FY2024 compared with 56.3% in Q1FY2023. The Operating
Profit rose 31% to Rs 1345.32 crore.
Provisions and contingencies rise: The bank has showed 33% increase in provisions
to Rs 837.96 crore.
Effective tax rate was at 1.4% in Q1FY2024 from 1.0% in Q1FY2023. Net
Profit rose by 28% YoY to Rs 500.35 crore during quarter ended June 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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2306 (3)
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2206 (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
|
5424.31
|
4434.74
|
22
|
19400.33
|
16729.87
|
16
|
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Interest Expended
|
3101.50
|
2680.99
|
16
|
11145.44
|
10418.73
|
7
|
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Net Interest Income
|
2322.81
|
1753.75
|
32
|
8254.89
|
6311.14
|
31
|
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Other Income
|
803.03
|
593.46
|
35
|
4108.75
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4903.02
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-16
|
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Net Total Income
|
3125.84
|
2347.21
|
33
|
12363.64
|
11214.16
|
10
|
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Operating Expenses
|
1780.52
|
1320.84
|
35
|
6421.46
|
5451.25
|
18
|
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Operating Profits
|
1345.32
|
1026.37
|
31
|
5942.18
|
5762.91
|
3
|
|
Provisions &
Contingencies
|
837.96
|
630.40
|
33
|
3593.93
|
3983.85
|
-10
|
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Profit Before Tax
|
507.36
|
395.97
|
28
|
2348.25
|
1779.06
|
32
|
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Provision for tax
|
7.01
|
3.79
|
85
|
249.46
|
69.52
|
259
|
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PAT
|
500.35
|
392.18
|
28
|
2098.79
|
1709.54
|
23
|
|
EPS*(Rs)
|
1.06
|
0.83
|
|
1.11
|
0.90
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|
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Adj BV (Rs)
|
9.22
|
8.31
|
|
8.50
|
7.90
|
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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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