State-owned Indian Overseas Bank on Wednesday posted a 28% increase in net profit at Rs 500 crore in the June quarter, mainly due to a decline in bad loans.
The Chennai-based lender had posted a net profit of Rs 392 crore in the year-ago period.
The total income in the first quarter of the current fiscal rose to Rs 6,227 crore against Rs 5,028 crore, IOB said in a regulatory filing.
The lender's interest income also increased to Rs 5,424 crore from Rs 4,435 crore in the same quarter a year ago.
On the asset quality side, the bank witnessed an improvement with the gross Non-Performing Assets easing to 7.13% of the gross advances by June 2023 as against 9.12% a year ago.
The net NPA too declined to 1.44% over 2.43% in the same period of the previous financial year.
However, provisions for bad loans increased to Rs 809 crore as compared to Rs 133 crore a year ago.
Provision Coverage Ratio is improved to 94.03% as on June 30, 2023 from 91.86% at the end of June 2022.
The capital adequacy ratio of the bank improved to 16.56% at the end of June over 14.79% a year ago.
During the quarter, the bank made a provision of Rs 180 crore on an ad-hoc basis for arrears pursuant to the proposed 12th bipartite settlement due from Nov. 1, 2022.
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