Indian Overseas Bank Q1 result: Net profit up by 28% to ₹500.35 crore
Indian Overseas Bank Q1 result: The Indian public sector bank reported a 28.4 per cent rise in its net profit to ₹500.35 crore in the June quarter of FY 23-24 against ₹392.3 crore a year ago. The Chennai-based bank reported a minor reduction in its NPA. In the quarter under review IOB reported gross NPA at 7.13%, whereas its net NPA stood at 1.44%.
Its NII was up by 32.4% to ₹2,322.5 crore. The company shares were trading 2.67% lower at ₹26.26 per share at 2:47 pm on BSE on Wednesday. The share value of the company has dropped by 17.61% YTD.
However, it has increased by 46.59% in last one year. Also read: Explained: What is a rating downgrade? And six key reasons why Fitch Ratings downgraded US In contrast to promising performance in terms of profit, IOB's total income reduced by approx 6% QoQ to ₹622.7 crore in Q1FY24 against ₹662.642 crore in the previous quarter. In terms of annual performance, its total income increased by 24% YoY.
The Chennai-based government bank has done tremendous improvement in terms of reducing its non performing assets.In the previous quarter, bank's NPA eased to 1.83 per cent. It has further eased to 1.44 per cent in the quarter under review. Whereas, IOB's net NPA stood at 2.43 per cent in the year ago period.
Company's capital adequacy ratio increased to 16.56% in Q1FY24 against to 14.79% in the year ago period. Also Read: Mutual Fund SIP: Four little-known hidden facts about SIPs. How it can impact investors' returns In the previous quarter, the bank's board had given approval for increasing paid-up equity Capital and aggregating up to ₹1,000 crore through Follow-on Public Offer (FPO)/Rights issue/Qualified Institutional Placement (QIP) or any other mode, it said.
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