Home / Companies / Company Results /  Indian Overseas Bank profit doubles to 350 cr in Q4, asset quality improves

State-owned Indian Overseas Bank (IOB) on Monday reported a jump of over two times in its net profit at 349.77 crore in the last quarter of the fiscal ended March 2021.

The bank had posted a net profit of 143.79 crore in the same period a year ago.

Total income during Q4FY21 rose to 6,073.80 crore as against 5,484.06 crore in Q4FY20, IOB said in a regulatory filing.

Provisions for bad loans and contingencies for the reported quarter increased to 1,380.46 crore as against 1,060.38 crore parked aside in the corresponding period a year earlier.

For the full year 2020-21, the bank reported a net profit of 831.47 crore. There was a net loss of 8,527.40 crore in 2019-20.

Total income during the year increased to 22,524.55 crore from 20,712.48 crore in the previous fiscal year. 

Bank's asset quality showed improvement with the gross non-performing assets (NPAs) falling to 11.69 per cent of the gross advances as of March 31, 2021 from 14.78 per cent by year ago same period.

In value terms, the gross NPAs or bad loans were of the order of 16,323.18 crore, down from 19,912.70 crore.

Net NPAs fell to 3.58 per cent ( 4,577.59 crore) from 5.44 per cent ( 6,602.80 crore).

The bank said its board of directors has approved the capital plan for 2021-22 under which it will issue equity shares up to a maximum extent of 125 crore shares by way of follow on public offer/rights issue.

The issue may be with or without participation from the government or to qualified institutional buyers (QIBs), the lender said.

It may be also on a preferential basis to LIC and other insurance companies or mutual funds/QIBs. The issuance of shares is subject to shareholders approval, IOB said.

Besides, the board also approved to raise tier II capital by issuing Basel III compliant bonds up to 1,000 crore in one or more tranches. The issue may be through a private placement or to retail segment by public issue, either domestically or overseas, it added.

IOB scrip traded at 21.20 apiece on BSE, up 2.66 per cent from previous close.

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

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