IOB posts Q1 net profit of Rs 121 crore

Government-owned Indian Overseas Bank (IOB) on Thursday posted a net profit of Rs 121 crore in April to June quarter as against a net loss of Rs 342 crore for the corresponding period of last fiscal year.

Government-owned Indian Overseas Bank (IOB) on Thursday posted a net profit of Rs 121 crore in April to June quarter as against a net loss of Rs 342 crore for the corresponding period of last fiscal year. This was mainly due to a reduction in provisioning for bad loans and contingencies to Rs 969 crore in Q1 FY21 as compared to Rs 1,158 crore in Q1 FY20.

Total deposits increased to Rs 2.25 lakh crore as against Rs 2.21 lakh crore but gross advances declined to Rs 1.31 lakh crore from Rs 1.47 lakh crore in the same period. Total income for the quarter ended June increased to Rs 5,234 crore as against Rs 5,006 in Q1 FY20 due to increase in treasury income.

Net non-performing assets (NPAs) totalled Rs 6,081 crore with a ratio of 5.1 per cent as compared to Rs 14,174 crore with a ratio of 11.04 per cent in Q1 FY20, reducing it by Rs 8,093 crore in absolute terms. Gross NPAs stood at Rs 18,291 crore with a ratio of 13.9 per cent in Q1 FY21 as against Rs 33,262 crore with a ratio of 22.53 per cent as on June 30 last year.