The board of IOB approved a proposal for raising equity capital of up to ₹1,000 crore and Tier II capital aggregating ₹1,000 crore.
| Photo Credit: RAGU R
Indian Overseas Bank (IOB) reported standalone net profit for the quarter ended March rose 18% from the year-earlier period to ₹650 crore on account of healthy growth in net interest income and improvement in asset quality.
Interest income rose 23% to ₹5,192 crore. Net interest income increased to ₹2,276 crore from ₹1,610 crore. Net interest margin grew to 3.20% from 2.41%, the public sector lender said in a regulatory filing.
Gross non-performing asset (NPA) declined by 238 bps to 7.44%, while that of net NPA by 82 bps to 1.83%. Total cash recovery was ₹447 crore in March 2023 against ₹460 crore in March 2022.
Provision coverage ratio improved to 92.63% in March 2023 from 91.66% in March 2022. Capital adequacy ratio stood at 16.10% as on March 2023.
For the year ended March 2023, total business stood at ₹4.50 lakh crore, of which deposit stood at ₹2.61 lakh crore and gross advances at ₹1.89 lakh crore. CASA deposits accounted for ₹1.14 lakh crore.
The board approved raising of equity capital of up to ₹1,000 crore and Tier II capital aggregating ₹1,000 crore.
During the year, IOB has planned to open 40 new branches across the country.
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