IOB Q1 net profit rises 20% to ₹392 crore

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State-owned Indian Overseas Bank (IOB) on Saturday posted a 20% rise in net profit to ₹392 crore for the first quarter of the current financial year, helped by a decline in bad loans.

The Chennai-based lender had reported a net profit of ₹327 crore in the April-June quarter of 2021-22.

The bank’s total income declined to ₹5,028 crore in the first quarter of 2022-23, as against ₹5,607 crore in the same period a year ago, IOB said in a regulatory filing.

Operating profit slipped to ₹1,026 crore from ₹1,202 crore a year earlier.

However, interest income of the bank moved up to ₹4,435 crore as against ₹4,063 crore.

Net interest margin (NIM) rose to 2.53% as against 2.34% at the end of first quarter of FY22.

The bank’s gross non-performing assets (NPA) ratio declined to 9.03% from 11.48% at June-end last year. Similarly, net NPAs declined to 2.43% from 3.15%.

As a result, the provision for bad loans declined to ₹132.73 crore from ₹1,010.15 in the same period a year ago.

Provision Coverage Ratio (PCR) improved to 91.86% as of June 30.

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