Indian Overseas Bank (IOB) on Wednesday reported a 113% jump in its net profit to Rs 454 crore for the third quarter of FY22, compared with Rs 213 crore in the year-ago period. The bank had reported a net profit of Rs 376 crore in the September quarter. Total income slipped by 7% to Rs 5,383 crore in the quarter under review, against Rs 5,787 crore in the year-ago period.
Partha Pratim Sengupta, MD & CEO, told media persons that IOB could post a good growth in bottom line owing to enhanced cash recovery and reduction in operational costs. “We have estimated the bank would need a total of Rs 3,000 crore over a period of two-three years, and apart from Rs 1,000 crore, we would be raising the remaining Rs 2,000 crore through a mix of instruments in due course,” he said.
Net NPA improved to 2.63% in Q3 from 3.13% in the corresponding quarter last fiscal. GNPA got reduced by Rs 240 crore. GNPA ratio stood at 10.40%, coming down from 12.19%. The provision coverage ratio improved to 92.33%.
“We are targeting to bring down the GNPA ratio to single digit, that is 9%, by March 31, 2022. Our domestic GNPA ratio has already come down below 10%, but the overseas ratio is hovering around 16% now,” he said. Sengupta said the bank has identified and transferred three accounts worth Rs 1,800 crore to NARCL for resolution.
On the recovery front, he said: “Every quarter, we are targeting to recover Rs 1,000 crore, and this quarter we have recovered close to Rs 1,200 crore. Cash recoveries will be our main focus area.”
Interest income stood at Rs 4,198 crore, compared to Rs 4,244 crore, while other income was at Rs 1,186 crore, against Rs 1,543 crore.
Total business stood at Rs 4,92,507 crore as on December 31, 2021, against Rs 4,58,276 crore as on December 31, 2020.
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