Indian Overseas Bank Q1 Results

Indian Overseas Bank

 Performance Highlights – 30.06.2022 (Rs. in Crore)

  30.06.2022 30.06.2021  
Deposits 2,60,045 2,42,941
Gross Advances 1,63,544 1,38,944
Investments 1,00,917 96,480
Business Mix 4,23,589 3,81,885
Operating Profit 1,026 1,202
Net Profit 392 327
CASA 1,12,012 1,01,129
CASA Ratio 43.07% 41.63%
Gross NPA 14,769 15,952
Net NPA 3,698 3,998
Net Interest Margin 2.53% 2.34%
Gross NPA Ratio 9.03% 11.48%
Net NPA Ratio 2.43% 3.15%
Cost to Income Ratio 56.27% 53.57%
PCR 91.86% 91.56%
CRAR* 14.79% 13.49%
RoA 0.52% 0.47%
RoE 12.63% 14.57%
CD Ratio 62.89% 57.19%

*Value of zero coupon bonds is reckoned at discounted value.

  • Profit for the quarter ended 30.06.2022 recorded at Rs. 392crores.
  • Net NPA has stood at 2.43% which is within prescribed RBI guidelines.
  • During the quarter GNPA reduced by Rs.1006crore. GNPA ratios improved to 9.03 % from 9.82 % QoQ
  • The provision coverage ratio recorded at 91.86%

 Performance Highlights For The Quarter Ended June30, 2022 – YoY

  1. Total business increased toRs. 4,23,589crores as on 30th June 2022 as against Rs.3,81,885crores as on 30th June 2021.
  1. Total deposits increased toRs.2,60,045crores as on 30th June 2022 as against Rs.2,42,941crores as on 30th June 2021.
  1. case of the Bank improved to43.07% as on 30th June 2022 as against 41.63% as on 30th June 2021. Total CASA has increased from Rs.1,01,129crores as on 30.06.2021to Rs.1,12,012crores as on 30.06.2022.
  1. Gross Advances increased to Rs.1,63,544crores as on 30th June 2022 as against Rs.1,38,944crores as on 30th June 2021. The Bank has evolved a policy of not taking fresh exposures in stressed sectors, below hurdle rated accounts, and BB and below rated accounts. The Bank has also exited accounts in the stressed sectors due to improve the quality of assets.
  1. Operating Profit for Quarter ended 30th June2022is decreased to Rs.1026crorefromRs.1202crore, due to marked to the Market provision of Rs.340.16 crore on investments.
  1. Provisions & Contingenciesforquarter ended June’22 is Rs.630crore as against Rs.868 crores for the quarter ended 30thJune’21.
  1. Net Profit: Net Profit for the quarter ended 30th June 2022 isRs.392crores as against Net Profit of Rs.327.00crore for the quarter ended 30th June 2021.
  1. Total income for the quarter ended 30th June 2022stood at Rs. 5028crore as against Rs.5155crores for the quarter ended 30th June 2021.
  1. Interest income stood at.4435 crores for the quarter ended30th June 2022 as against Rs. 4,063crores for the quarter ended 30th June 2021. 
  1. Non-interest income is Rs. 593crore for the quarter ended
    30th June 2022 as against Rs.1,092crore for the quarter ended 30th June 2021 due to an increase in other income.
  1. Total Expenditurestood atRs.4002 crore for the quarter ended 30th June 2022Increasedas againstRs.3,953crores for the quarter ended 30th June 2021.
  1. NPA MANAGEMENT: Gross NPA as at 30th June 2022 is at Rs.14769crores with ratio of 9.03 %as against Rs. 15,952crores with ratio of 11.48% as on 30th June 2021.
  1. Total Reduction in NPAof Rs.1006 crore achieved for quarter ended June ’22as against the NPA Reduction of Rs. 1,616crores during the quarter ended June‘21
  1. Net NPA is at Rs.3698.crore with ratio of 2.43% as on 30th June 2022 as against Rs. 3,998crores with ratio of3.15% as on 30th June 2021, reducing it by Rs.300crores in absolute terms.
  1. Provision Coverage Ratio is improved to 91.86% as on 30th June 2022 as against 91.56% as on 30th June 2021.

Performance Highlights for the Quarter ended June 30, 2022 QoQ (Sequential) 

  1. Total business stood at Rs.4,23,589crores as on 30th June 2022 as against Rs. 4,17,960croresas on 31st March 2022. (including Investment)
  1. Total deposits increased toRs.2,60,045 crores as on 30th June 2022 as against Rs.2,62,159crores as on 31st March 2022. 
  1. CASA of the Bank stood at43.07 % as on 30th June 2022 as against 43.44% as on 31st March 2022. 
  1. Gross Advances stood at Rs. 1,63,544 crores as on 30th June 2022 as against Rs.1,55,801crores as on 31st March 2022.
  1. Operating Profit for Quarter ended 30th June 2022 stood atRs.1026crore as against Rs. 1,614crores for the quarter ended 31st March 2022. 
  1. Net Profit for the quarter ended 30th June 2022stood at Rs.392croresas against Rs.552crores for quarter ended 31st March 2022. 
  1. Total income for the quarter ended 30th June 2022 is Rs.5028crore as against Rs.5719 crores for the quarter ended 31st March 2022.
  1. Interest income stood at Rs.4435crores for the quarter ended 30th June 2022 as against Rs.4215 crores for the quarter ended 31st March 2022. 
  1. Non-interest income stood at Rs. 593 crore for the quarter ended 30th June 2022 as against Rs. 1504 crore for the quarter ended 31st March 2022.
  1. Total Expenditure reduced from Rs.4104crores for the quarter ended 31st March 2022 to Rs.4002 crores for the quarter ended 30th June 2022.
  1. NPA MANAGEMENT: Gross NPAreduced to Rs.14769crore with a ratio of 9.03% as on 30th June 2022as against Rs.15,299crores with ratio of9.82% as on 31st March 2022.
  1. Total Reduction in NPAisRs. 1006crore achieved for quarter ended June ’22 as against Rs.1386crore achieved for quarter ended March ’22.
  1. Net NPA as at 30th June 2022reduced to Rs.3698crores with ratio of 2.43 % as against Rs.3825crores with ratio of 2.65% as on 31st March 2022 thus reducing it by Rs.127 crores in absolute terms. 
  1. Provision Coverage Ratio is improved to91.86% as against 91.66% as on 31st March 2022. 

Ø CAPITAL ADEQUACY RATIO (CRAR):

Particulars Basel III as on 30.06.2022 Regulatory Requirement
CET 1 11.75% 5.50%
Tier I 11.75% 7.00%
Tier II 3.04% 2.00%
Total CRAR                                       14.79% 9.00%*

* Excluding CCB

 Ø KEY FINANCIAL RATIOS: 

  • Credit Deposit Ratiois58.99 % as on 30.06.2022 as against 57.19% as on 30.06.2021. 
  • Average Cost of Depositis4.04% as on 30.06.2022 as against 4.26% as on 30.06.2021.
  • Average Yield on Advancesstood at  7.34% as on 30.06.2022 as against 7.57% as on 30.06.2021.
  •  Cost to Income Ratiostood at56.27% as on 30.06.2022as against53.57% as on 30.06.2021.
  • Net Interest Margin stood at 2.53% for quarter ended 30.06.2022.

 Bank has qualified for ‘Exemplary Award of Par Excellence’ under “AtalPension Yojana” for achieving 187% of the target under the campaign beat the best & be the best’ held by PFRDA.

Our Bank is the first Public Sector Bank to tie up with MF Utilities India Pvt Ltd. and launched Mutual Fund Utilities (MFU), a single window platform in collaboration with Mutual Fund Utilities Pvt Ltd, a SEBI registered entity.MFU provides a Technological platform for our Branches to facilitate our customers while investing in any of the mutual schemes under our empanelled Asset Management Companies (AMCs).

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Neel Achary is the editor of Business News This Week. He has been covering all the business stories, economy, and corporate stories.