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Indian Overseas Bank (IOB) has announced robust financial results for the quarter ending September 30, 2024 (Q2FY25), reflecting strong growth across key financial metrics and a continued focus on asset quality improvement.

Key Highlights:

* Total Business saw a significant year-on-year (Y-o-Y) growth of 12.20%, reaching Rs 5,40,801 Crore, up from Rs 4,82,006 Crore.

* Total Deposits rose by 13.75% Y-o-Y to Rs 3,10,652 Crore.

* Gross Advances increased by 10.16% to Rs 2,30,149 Crore.

* Operating Profit grew substantially by 26.89% Y-o-Y to Rs 2,128 Crore, up from Rs 1,677 Crore.

* Net Profit also saw a notable increase, rising by 24.32% Y-o-Y to Rs 777 Crore.

Strong Asset Quality and Profitability

IOB has demonstrated exceptional progress in reducing non-performing assets:

* Gross NPA Ratio decreased by 202 basis points (bps) to 2.72% from 4.74% a year ago.

* Net NPA Ratio improved by 21 bps to 0.47% from 0.68% Y-o-Y.

* Provision Coverage Ratio (PCR) improved to 97.06%, reflecting an increase of 30 bps Y-o-Y.

* The Return on Assets (ROA) for Q2FY25 reached 0.82%, showing an improvement of 7 bps from the previous year, while Return on Equity (ROE) increased to 16.90%, up by 74 bps Y-o-Y. 

Income and Margin Growth

IOB’s income generation remained strong:

* Total Income increased by 22.34% Y-o-Y to Rs 8,484 Crore.

* Interest Income grew by 17.69% Y-o-Y to Rs 6,851 Crore.

* Non-Interest Income saw an impressive Y-o-Y growth of 46.59%, reaching Rs 1,633 Crore.

* Additionally, the Net Interest Margin (NIM) stood at 3.08% for the quarter.

Capital Adequacy

The bank’s Capital Adequacy Ratio (CRAR), under Basel III, remained robust at 17.45%, with a Tier I component of 14.75%.

Enhanced CASA and CD Ratios

* CASA deposits improved by 10.61% Y-o-Y, totaling Rs 1,31,856 Crore, with a CASA ratio of 42.44% as of September 30, 2024.

* The Credit to Deposit (CD) Ratio stood at 74.09% for the quarter.

PERFORMANCE HIGHLIGHTS (y-o-y)

(Quarter Ended 30.09.2024 Over 30.09.2023)

* Total Business grew by 12.20% to Rs 5,40,801 Crore from Rs 4,82,006 Crore.

* Total Deposits raised up by 13.75% to Rs 3,10,652 Crore from Rs 2,73,093 Crore.

* Gross Advances increased by 10.16% to Rs 2,30,149 Crore from Rs 2,08,913 Crore.

* Gross Investments increased to Rs 1,08,517Crore from Rs 97,891 Crore.

* Operating Profit grew by 26.89 % to Rs 2,128 Crore from Rs 1,677 Crore.

* Net Profit up by 24.32% to Rs 777 Crore from Rs 625 Crore.

* Gross NPA Ratio recorded at 2.72% as on 30.09.2024 as against 4.74% as on 30.09.2023, with a reduction of 202 bps.

* Net NPA Ratio stood at 0.47% as on 30.09.2024 as against 0.68% as on 30.09.2023, with a reduction of 21 bps.

* CASA improved to Rs 1,31,856 Crore from Rs 1,19,206 Crore, reflecting Y-o-Y growth of 10.61%

* CASA Ratio stood at 42.44% for the quarter ended 30.09.2024.

* Credit to Deposit (CD) Ratio stood at 74.09% for the quarter ended 30.09.2024.

* Net Interest Margin stood at 3.08% for the quarter ended 30.09.2024.

* Provision Coverage Ratio improved to 97.06%, registering an improvement of 30 bps.

* CRAR stood at 17.45% of which Tier I is 14.75%.

* Return on Assets (ROA) improved to 0.82%, registering an improvement of 7bps.

* Return on Equity (ROE) improved to 16.90% from 16.16% with an improvement of 74bps Y-o-Y.

PROFITABILITY (y-o-y)

(Quarter Ended 30.09.2024 Over 30.09.2023)

* Net Profit has increased to RS 777 Crore for the Q2FY25 from Rs 625 Crore for the Q2FY24, registering a growth of Rs 152 Crore at 24.32% Y-o-Y basis.

* Operating Profit has increased to Rs 2,128 Crore for Q2FY25 from Rs 1,677 Crore for Q2FY24, registering a growth of Rs 451 Crore at 26.89% Y-o-Y basis.

* Total Income improved by 22.34% to Rs 8,484 Crore for Q2FY25 from Rs 6,935 Crore for Q2FY24.

* Interest Income grew by 17.69% on Y-o-Y basis to Rs 6,851 Crore in Q2FY25 as against Rs 5,821 Crore for Q2FY24.

* Non-Interest Income grew by 46.59% on Y-o-Y basis to Rs 1,633 Crore in Q2FY25 as against Rs 1,114 Crore for Q2FY24.

* Return on Assets (ROA) improved to 0.82% for Q2FY25 as against 0.75% for Q2FY24.

* Return on Equity (ROE) also improved to 16.90% for Q2FY25 as against 16.16% for Q2FY24.

ASSET QUALITY

(Quarter Ended 30.09.2024 Over 30.06.2024 & 30.09.2023)

* Gross Non-Performing Assets (GNPA) ratio recorded at 2.72% as of 30.09.2024 as against 2.89% as of 30.06.2024 and 4.74% as of 30.09.2023.

* Net Non-Performing Assets (NNPA) ratio stood at 0.47% as of 30.09.2024 as against 0.51% as of 30.06.2024, 0.68% as of 30.09.2023.

* Provision Coverage Ratio (PCR) improved to 97.06% as of 30.09.2024 from 96.76% as of 30.09.2023. (As on 30.06.2024, PCR was 96.96%).

RECOVERY

Total Recovery for the quarter ended 30.09.2024 stood at Rs 1,482 Crore.

Recovery from the written off accounts for the quarter ended 30.09.2024 is Rs 1,118 Crore.

CAPITAL ADEQUACY

* BASEL III Capital Adequacy Ratio (CRAR) stood at 17.45 % as of 30.09.2024, out of which CET1 is 14.75% and Tier-II is 2.70%.

Key Summary of 30.09.2024 Results

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