Active Stocks
Sat Mar 02 2024 12:29:56
  1. Tata Steel share price
  2. 155.30 3.53%
  1. HDFC Bank share price
  2. 1,430.50 -0.05%
  1. State Bank Of India share price
  2. 773.40 0.53%
  1. ICICI Bank share price
  2. 1,084.60 -0.21%
  1. Axis Bank share price
  2. 1,095.00 -0.40%
Business News/ Companies / Company Results/  Indian Overseas Bank Q1 results: Net profit doubles to 327 cr as provisions decline
BackBack

Indian Overseas Bank Q1 results: Net profit doubles to ₹327 cr as provisions decline

The interest income was down by 5.6 per cent at ₹4,063 crore during the quarter
  • Non-interest income rose by 17.2 per cent at ₹1,092 crore due to increase in other income
  • Indian Overseas Bank said it plans to come out of PCA by focussing on recovery, low-cost deposits and less capital consuming advances.Premium
    Indian Overseas Bank said it plans to come out of PCA by focussing on recovery, low-cost deposits and less capital consuming advances.

    Public-sector lender Indian Overseas Bank saw its net profit more than double to 327 crore for the quarter ended June 30, 2021 as provisions for bad loans declined.

    The bank had posted a net profit of 121 crore in the year-ago quarter.

    Total income during Q1FY22, however, was down at 5,155 crore as against 5,234 crore in Q1FY21, Indian Overseas Bank said in a regulatory filing.

    The interest income was down by 5.6 per cent at 4,063 crore during the quarter. The non-interest income rose by 17.2 per cent at 1,092 crore due to increase in other income, the bank said.

    The Chennai-headquartered lender said it reduced non-performing assets (NAPs) worth 1,616 crore during the quarter, as against 1,969 crore in June 2020 quarter.

    Bank's gross NPAs (bad loans) fell to 11.48 per cent of the gross advances as of June 30, 2021, against 13.90 per cent in the year-ago period.

    In terms of value, the gross NPAs were worth 15,952 crore, down from 18,291 crore. Net NPAs fell to 3.15 per cent ( 3,998 crore) from 5.10 per cent ( 6,081 crore).

    Provisions for bad loans and contingencies for the quarter fell to 868 crore from 969.52 crore a year ago.

    "The bank plans to come out of prompt corrective action (PCA) by focussing on recovery, low-cost deposits and less capital consuming advances," it said.

    The provision coverage ratio recorded at 91.56 per cent, it added.

    Shares of the bank traded 2.7 per cent down at 23.40 apiece on BSE.

    Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

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

    Catch all the Corporate news and Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates & Live Business News.
    More Less
    Published: 03 Aug 2021, 05:39 PM IST
    Next Story footLogo
    Recommended For You
    Switch to the Mint app for fast and personalized news - Get App

    Chat with MintGenie