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Indian Overseas Bank has reported 25% growth in net profit at Rs 624.58 crore
for the quarter ended September 2023 (Q2FY2024). The bank has posted healthy 20%
growth in net interest income (NII), The Net Interest Margin (NIM) of the bank
improved to 3.12% in Q2FY2024 compared to 2.79% in the corresponding quarter of
previous year.
On business front, the
bank as has posted 11% growth in business with strong 21% surge in loan book. The
asset quality of the bank has improved sharply in Q2FY2024. Bank has
substantially improved the credit to deposit ratio to 76.5% at end September
2023 from 66.0% at end September 2022. The CASA ratio of the bank has also
moved up to 43.7% at end September 2023 from 42.8% at end September 2022.
Asset quality improves: The bank has substantially
improved asset quality in Q2FY2024.
GNPA ratio dipped to
4.74% and NNPA ratio also plunged to 0.68% end September 2023.
Provision coverage ratio
was steady at 96.76% at end September 2023 compared to 94.03% a quarter ago and
90.94% a year ago.
The capital adequacy
ratio of the bank stood at 17.0% with Tier I ratio at 13.8% at end September
2023.
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Asset Quality
Indicators: Indian Overseas Bank
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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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Sep/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)
|
9893.30
|
13628.98
|
14071.55
|
14333.21
|
14726.35
|
-27
|
-30
|
-33
|
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Net NPA (Rs Crore)
|
1364.34
|
2589.97
|
3266.01
|
4000.35
|
4148.60
|
-47
|
-58
|
-67
|
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% Gross NPA
|
4.74
|
7.13
|
7.44
|
8.19
|
8.53
|
-239
|
-270
|
-379
|
|
% Net NPA
|
0.68
|
1.44
|
1.83
|
2.43
|
2.56
|
-76
|
-115
|
-188
|
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% PCR
|
96.76
|
94.03
|
92.63
|
91.34
|
90.94
|
273
|
413
|
582
|
|
% CRAR - Basel III
|
17.00
|
16.56
|
16.10
|
15.16
|
15.14
|
44
|
90
|
186
|
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% CRAR - Tier I -
Basel III
|
13.81
|
13.34
|
12.88
|
12.66
|
12.11
|
47
|
93
|
170
|
|
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 11% YoY to Rs 482006 crore end September 2023, driven by 21% surge
in advances to Rs 208913 crore. Deposits rose 4% to Rs 273093 crore at end
September 2023.
CASA deposits ratio improves:
The CASA deposits of the
bank declined 7% YoY to Rs 119206 crore at end September 2023. The CASA ratio improved
to 43.7% at end September 2023 compared to 42.8% at end September 2022, while eased
marginally from 44.1% a quarter ago. The term deposits have increased 3% to Rs 153887
crore end September 2023.
Investment book of the bank declined -2% YoY to Rs 95328 crore at end September
2023.
Margins improve: The bank has showed 58 bps
YoY jump in cost of deposits to 4.69%, while yield on advances increased 95 bps
YoY to 8.78% in Q2FY2024. Thus, the NIM has improved 33 bps YoY to 3.12%.
Book value of the bank stood at Rs 12.5
per share at end September 2023, while the adjusted book value (net of NNPA and
25% of restructured advances) was Rs 11.4 per share at end September 2023.
Quarterly Performance
NII rises as NIM
improves: Bank
has recorded 23% increase in the interest earned at Rs 5821.02 crore, while interest
expenses increased 26% to Rs 3475.15 crore in Q2FY2024. NII improved 20% to Rs 2345.87
crore in the quarter ended September 2023.
Non-interest income
declines: Bank
has posted 2% dip in the overall non-interest income to Rs 1114.19 crore in the
quarter ended September 2023.
Stable expenses ratio: The operating expenses
of the bank increased 12% to Rs 1782.94 crore, as other expenses moved up 17% to
Rs 644.74 crore, while employee expenses increased 9% to Rs 1138.2 crore in
Q2FY2024. Cost to income ratio was nearly stable at 51.5% in Q2FY2024 compared
with 51.6% in Q2FY2023, helping the Operating Profit to increase 12% to Rs 1677.12
crore.
Provisions and
contingencies rises: The bank has showed 6% rise in provisions to Rs 1044.20 crore.
Effective tax rate rose to
1.3% in Q2FY2024 from 0.9%
in Q2FY2023. Net Profit rose by 25% YoY to Rs 624.58 crore during quarter ended
September 2023.
Financial Performance
H1FY2024:
Bank has posted 26% increase
in net profit to Rs 1124.93 crore in the half year ended September 2023
(H1FY2024). The net interest income increased 26% to Rs 4668.68 crore, while
non-interest income moved up 11% to Rs 1917.22 crore, pushing up net total
income by 21% to Rs 6585.90 crore in H1FY2024. The operating expenses increased
22% to Rs 3563.46 crore, while provision and contingencies galloped 16% to Rs 1882.16
crore, allowing profit before tax to increase 26% to Rs 1140.28 crore in
H1FY2024. The cost-to-income ratio rose to 54.1% in H1FY2024 compared to 53.6% in
H1FY2023. An effective tax rate was higher at 1.3% in H1FY2024 compared to 0.9%
in H1FY2023. The net profit has increased 26% to Rs 1124.93 crore in H1FY2024.
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Indian Overseas Bank: Results
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Particulars
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2309 (3)
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2209 (3)
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Var %
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2309 (6)
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2209 (6)
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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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5821.02
|
4717.61
|
23
|
11245.33
|
9152.35
|
23
|
19400.33
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16729.87
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16
|
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Interest Expended
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3475.15
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2764.25
|
26
|
6576.65
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5445.24
|
21
|
11145.44
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10418.73
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7
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Net Interest Income
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2345.87
|
1953.36
|
20
|
4668.68
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3707.11
|
26
|
8254.89
|
6311.14
|
31
|
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Other Income
|
1114.19
|
1134.84
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-2
|
1917.22
|
1728.30
|
11
|
4108.75
|
4903.02
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-16
|
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Net Total Income
|
3460.06
|
3088.20
|
12
|
6585.90
|
5435.41
|
21
|
12363.64
|
11214.16
|
10
|
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Operating Expenses
|
1782.94
|
1594.02
|
12
|
3563.46
|
2914.86
|
22
|
6421.46
|
5451.25
|
18
|
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Operating Profits
|
1677.12
|
1494.18
|
12
|
3022.44
|
2520.55
|
20
|
5942.18
|
5762.91
|
3
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Provisions &
Contingencies
|
1044.20
|
988.23
|
6
|
1882.16
|
1618.63
|
16
|
3593.93
|
3983.85
|
-10
|
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Profit Before Tax
|
632.92
|
505.95
|
25
|
1140.28
|
901.92
|
26
|
2348.25
|
1779.06
|
32
|
|
Provision for tax
|
8.34
|
4.61
|
81
|
15.35
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8.41
|
83
|
249.46
|
69.52
|
259
|
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PAT
|
624.58
|
501.34
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25
|
1124.93
|
893.51
|
26
|
2098.79
|
1709.54
|
23
|
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EPS*(Rs)
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1.3
|
1.1
|
|
1.19
|
0.95
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|
1.1
|
0.9
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Adj BV (Rs)
|
11.4
|
8.3
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|
11.4
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8.3
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|
8.5
|
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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