PremiumPublic-sector lender Indian Overseas Bank saw its net profit more than double to ₹327 crore for the quarter ended June 30, 2021 as provisions for bad loans declined.
The bank had posted a net profit of ₹121 crore in the year-ago quarter.
Total income during Q1FY22, however, was down at ₹5,155 crore as against ₹5,234 crore in Q1FY21, Indian Overseas Bank said in a regulatory filing.
The interest income was down by 5.6 per cent at ₹4,063 crore during the quarter. The non-interest income rose by 17.2 per cent at ₹1,092 crore due to increase in other income, the bank said.
The Chennai-headquartered lender said it reduced non-performing assets (NAPs) worth ₹1,616 crore during the quarter, as against ₹1,969 crore in June 2020 quarter.
Bank's gross NPAs (bad loans) fell to 11.48 per cent of the gross advances as of June 30, 2021, against 13.90 per cent in the year-ago period.
In terms of value, the gross NPAs were worth ₹15,952 crore, down from ₹18,291 crore. Net NPAs fell to 3.15 per cent ( ₹3,998 crore) from 5.10 per cent ( ₹6,081 crore).
Provisions for bad loans and contingencies for the quarter fell to ₹868 crore from ₹969.52 crore a year ago.
"The bank plans to come out of prompt corrective action (PCA) by focussing on recovery, low-cost deposits and less capital consuming advances," it said.
The provision coverage ratio recorded at 91.56 per cent, it added.
Shares of the bank traded 2.7 per cent down at ₹23.40 apiece on BSE.
This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.
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