Partha Pratim Sengupta,
MD and CEO, IOB
Lower provisioning boosts IOB’s net
Bank posts 58% jump in Q4 profit
Chennai, May 18IndianOverseasBank(IOB)reported a 58 per cent increase in net profit at ₹552 crore for the quarter ended March 31, 2022, compared to ₹350 crore in the year-ago quarter, helped by lower provisions.
Thebank’s operatingprofit was lower at ₹1,614 crore against₹1,724 crore in the year-ago quarter, due to a drop in income.However, on a sequential basis, it was higher when compared to ₹1,527 crore in December 2022 quarter.
Total income stood at₹5,719 crore compared to ₹6,074 crore. Interest income grew 4 per cent to₹4,215 crore (₹4,057 crore inQ4 of FY21).The net interest margin stood at 2.41 per cent (2.39 per cent).
Total provisions & contingencies were lower at ₹1,014 crore (₹1,380 crore). But provisions for NPAs were higher at₹569 crore (₹157 crore).The bank’s slippages were at ₹981 crore in March 2022 quarter. This was lower compared to the ₹1,000 crore plus slippages the bank reported in every previous quarter in FY22.
For the March 2022 quarter, the gross NPA ratio fell to 9.82 per cent from 11.69 per cent in the year-ago quarter and 10.40 per cent in the preceding quarter.Net NPA at 2.65 per cent was lower as compared with 3.58 per cent inQ4 of FY21, but marginally up from 2.63 per cent in the preceding quarter.
Good recoveries
For the full year ended March 31, 2022, the bank’s net profit more than doubled at ₹1,710 crore as compared to ₹839 crore in FY21, helped mainly by lower provisions. “The lower provisions that we had to make for bad debts and good recoveries we made contributed to the strong bottomline in FY22,”saidPartha Pratim Sengupta, MD & CEO of thebank.
Total provisions and contingencies were significantly lower at ₹3,984 crore in FY22 as against ₹5,056 crore in FY21. NPA Provisions were also lower at₹3,401 crore (from ₹3,943 crore).
Recovery in NPA accounts stood at ₹1,386 crore. The operating profit of IOB was lower at ₹5,763 crore (₹5,896 crore in FY21) on account of a fall in total income, which declined to ₹21,633 crore as compared to ₹22,525 crore. Interest income stood at ₹16,730 crore (from ₹16,964 crore).