Indian Overseas Bank Q4 Results: Profit Soars 30% To Rs 1,050 Crore; Mulls Rs 4,000 Crore Fundraise
During the quarter, the bank's total income increased to Rs 9,215 crore, as against Rs 9,106 crore a year ago.
(Photo: Indian Overseas Bank/X)
The state-owned Indian Overseas Bank on Friday reported a 30% rise in net profit to Rs 1,051 crore for the March quarter, helped by a decline in bad loans and a rise in interest income. The Chennai-based lender had earned a net profit of Rs 808 crore in the year-ago period. The bank's Managing Director and Chief Executive Officer Ajay Kumar Srivastava said the bank expects 13-14% growth across sectors during the current financial year.
During the quarter, the bank's total income increased to Rs 9,215 crore, as against Rs 9,106 crore a year ago.
Interest income grew to Rs 7,634 crore during the period under review, from Rs 6,629 crore in the corresponding quarter a year ago.
Briefing reporters, Srivastava said the bank would raise Rs 4,000 crore during the current financial year following which the Government of India's shareholding would come down to 90 per cent from the current 94.61%.
Subject to shareholders approval, the board plans to mobilise up to Rs 4,000 crore by way of follow-on public offer, rights issue, qualified institutional placement or any other mode or combination in one or more tranches during fiscal 2025-26.
On the asset quality front, the bank's gross Non-Performing Assets moderated to 2.14% of gross advances, as compared to 3.10% by the end of March 2024.
Similarly, net NPAs also came down to 0.37% of the advances, over 0.57% at the end of 2024.
As a result, total provision during the quarter eased to Rs 200 crore, as against Rs 409 crore in the same quarter a year ago.
The bank's capital adequacy ratio rose to 19.74%, from 17.28% at the end of fiscal 2024.
For the entire financial year 2024-25, the bank reported a 26% increase in its profit at Rs 3,335 crore, as against Rs 2,656 crore in the previous year.
The bank's total income during the financial year rose to Rs 33,676 crore, as against Rs 29,706 crore a year ago.
Responding to a query, Srivastava said, the 13-14% growth would be across sectors including retail, agricultural and Micro, Small and Medium Enterprises and there is no focus in any particular sector.
"Currently, the RAM sector (Retail, Agriculture and MSME) is around 77%. There is no particular area as such," he said.
On fund raising, he said post the fund raise of Rs 4,000 crore, the government of India share holding would come to 90% as a 'resultant effect'.
