Indian Overseas Bank MD & CEO Ajay Kumar Srivastava feels that they will be able to post growth of 13-14% in FY25.
Indian Overseas Bank (IOB) reported standalone net profit for the December quarter rose 30% from the year earlier period to ₹723 crore due to rise in interest income and higher recovery from technically written-off accounts.
Total income of the bank grew by 24% to ₹7,437 crore. Interest income increased by 22% to ₹6,176 crore, while non-interest income stood at ₹1,262 crore against ₹950 crore. Net interest margin contracted to 3.12% from 3.27%, the public sector lender said in a statement.
The bank’s gross NPA ratio declined to 3.9% from 8.19%, while net NPA declined to 0.62% from 2.43%. The provision coverage ratio was at 96.85% (91.34%).
“In Q3, we had fresh slippages to the tune of ₹331 crore, whereas we could recover ₹1,126 crore, out of which cash recovery was at ₹327 crore. The important aspect was that we were able to recover above 60% of the total recovery from the technically written-off accounts,” MD and CEO Ajay Kumar Srivastava told the media.
According to him, the bank was able to contain the slippages to about ₹300 crore every quarter and the slippage ratio in Q3 stood at 0.17%.
“We will be able to maintain the net NPA ratio below 1% going forward. In Q3, it stood at 0.62%, and we will be able to further reduce it in the coming quarters,” he said.
In the current fiscal, IOB recovered ₹3,200 crore against its recovery target of ₹4,700 crore.
Total business increased to ₹4,94,209 crore from ₹4,32,530 crore, of which total deposits accounted for ₹2,78,046 crore. CASA deposits grew 43% to ₹1,20,915 crore.
Retail, agri and MSME (RAM) segment advances posted 14% growth, while corporate advances clocked a growth of 31%. For FY25, IOB is expecting a credit growth of 13-14%, he said.
