Indian Overseas Bank's Profit Soars by 30% Amid Loan Improvements

Indian Overseas Bank reported a 30% rise in net profit to Rs 1,051 crore for the March quarter, driven by a reduction in bad loans and an increase in interest income. The bank's total income rose to Rs 9,215 crore. Plans to raise up to Rs 5,000 crore in capital were approved.

State-owned Indian Overseas Bank (IOB) announced a significant 30% increase in net profit for the March quarter, totaling Rs 1,051 crore. This growth was primarily attributed to a reduction in bad loans and a surge in interest income.

The Chennai-headquartered bank's total income climbed to Rs 9,215 crore, compared to Rs 9,106 crore the previous year, according to its regulatory filing. Interest income experienced a notable rise, reaching Rs 7,634 crore from Rs 6,629 crore year-over-year.

IOB's asset quality saw improvements, with gross Non-Performing Assets (NPAs) reducing to 2.14% and net NPAs dropping to 0.37%. Consequently, total provisions eased to Rs 200 crore. The bank also reported an increase in its capital adequacy ratio to 19.74% and plans to raise up to Rs 5,000 crore in capital through various financial instruments, pending requisite approvals.