Indian Overseas Bank reports 24% jump in Q4 PAT with improvement in asset quality

The bank reported a 4% rise in its operating profit at ₹1,961 crore during the quarter. Gross Advances rose by 16% to ₹2.19 lakh crore as of March 31, 2024 while deposits increased by 10% to ₹2.85 lakh crore. The bank’s average cost of deposits stood at 4.7% as of March 31, 2024 against 4.13% as of March 31, 2023.

Asset quality of the lender improved with the gross non-performing assets (GNPA) ratio coming in at 3.10% compared to 7.44% as of March 31, 2023. The net NPA ratio fell to 0.57% against 1.83% in the same period of the previous fiscal. The bank’s net interest margin strengthened to 3.53% during the quarter as compared to 3.2% in the same period a year ago.

IOB said total recovery for the quarter came in at ₹1,468 crore as against ₹1,400 crore in the same period of the previous fiscal. Total recovery for the fiscal year 2024 stood at ₹4,549 crore, of which, recovery from technically written-off accounts stood at ₹2,372.44 crore, it said. The lender’s current account savings account (CASA) hit ₹1.25 lakh crore as of March 31, 2024, representing a sequential growth of 43.9%.

For the full fiscal year, the bank reported a 27% rise in its net profit at ₹2,656 crore. Operating profit rose 14% YoY to ₹6,764 crore during the year. The provision coverage ratio (PCR) stood at 96.85% as of March 31, 2024 against a PCR of 92.63% as of the same period a year ago.

Shares of the lender have gained over 40% since the beginning of the year. The stock has risen nearly 150% in the last one year.