|
Indian Overseas Bank has reported 24% growth in net profit at Rs 808.10 crore
for the quarter ended March 2024 (Q4FY2024). The bank has posted healthy 21% growth
in net interest income (NII). The Net Interest Margin (NIM) of the bank
improved to 3.53% in Q4FY2024 compared to 3.20% in the corresponding quarter of
previous year.
On business front, the
bank as has posted 12% growth in business with strong 16% surge in loan book. The
asset quality of the bank has improved in Q4FY2024. Bank has substantially raised
the credit to deposit ratio to 76.6% at end March 2024 from 72.4% at end March
2023. The CASA ratio of the bank rose to 43.9% at end March 2024 from 43.7% at
end March 2023.
Asset quality improves: The bank has continued
to improve asset quality in Q4FY2024.
GNPA ratio declined to
3.1% and NNPA ratio dipped to 0.57% end March 2024.
Provision coverage ratio
was strong at 96.85% at end March 2024 compared to 96.85% a quarter ago and 92.63%
a year ago.
The capital adequacy
ratio of the bank stood at 17.3% with Tier I ratio at 14.5% at end March 2024.
|
Asset Quality
Indicators: Indian Overseas Bank
|
|
|
Mar-24
|
Dec-23
|
Sep-23
|
Jun-23
|
Mar-23
|
Variation
|
|
QoQ
|
YoY
|
|
Gross NPA (Rs Crore)
|
6794.43
|
8440.83
|
9893.30
|
13628.98
|
14071.55
|
-20
|
-52
|
|
Net NPA (Rs Crore)
|
1216.86
|
1302.58
|
1364.34
|
2589.97
|
3266.01
|
-7
|
-63
|
|
% Gross NPA
|
3.10
|
3.90
|
4.74
|
7.13
|
7.44
|
-80
|
-434
|
|
% Net NPA
|
0.57
|
0.62
|
0.68
|
1.44
|
1.83
|
-5
|
-126
|
|
% PCR
|
96.85
|
96.85
|
96.76
|
94.03
|
92.63
|
0
|
422
|
|
% CRAR - Basel III
|
17.28
|
16.80
|
17.00
|
16.56
|
16.10
|
48
|
118
|
|
% CRAR - Tier I -
Basel III
|
14.47
|
13.95
|
13.81
|
13.34
|
12.88
|
52
|
159
|
|
Variation in basis
points for figures given in percentages and in % for figures in Rs crore
|
Business Highlights:
Healthy business growth:
The business of the bank
has increased 12% YoY to Rs 504923 crore end March 2024, driven by 16% surge in
advances to Rs 219018 crore. Deposits rose 10% to Rs 285905 crore at end March
2024.
CASA deposits ratio improves:
The CASA deposits of the
bank increased 10% YoY to Rs 125508 crore at end March 2024. The CASA ratio rose
to 43.9% at end March 2024 compared to 43.7% at end March 2023, while increased
from 43.5% a quarter ago. The term deposits have increased 9% to Rs 160397 crore
end March 2024.
Investment book of the bank rose 5% YoY to Rs 100917 crore at end March 2024.
Margins improve: The NIM has improved 33 bps
YoY to 3.53%.
Book value of the bank stood at Rs 13.3
per share at end March 2024, while the adjusted book value (net of NNPA and 25%
of restructured advances) was Rs 12.4 per share at end March 2024.
Quarterly Performance
NII rises as NIM
improves: Bank
has recorded 28% increase in the interest earned at Rs 6628.89 crore, while
interest expenses increased 33% to Rs 3865.81 crore in Q4FY2024. NII improved 21%
to Rs 2763.08 crore in the quarter ended March 2024.
Healthy growth in non-interest
income: Bank
has posted strong 73% jump in the overall non-interest income to Rs 2477.37 crore
in the quarter ended March 2024.
Stable expenses ratio: The operating expenses
of the bank increased 80% to Rs 3279.34 crore, as other expenses moved up 5% to
Rs 762.33 crore, while employee expenses zoomed 129% to Rs 2517.01 crore in
Q4FY2024. Cost to income ratio surged to 62.6% in Q4FY2024 compared with 49.2% in
Q4FY2023. Operating Profit rose 4% to Rs 1961.11 crore.
Provisions and
contingencies decline: The bank has showed 23% decline in provisions to Rs 767.66 crore.
Effective tax rate increased to 32.3% in Q4FY2024 from 26.6% in Q4FY2023. Net Profit rose by 24% YoY
to Rs 808.10 crore during quarter ended March 2024.
Financial Performance
FY2024:
Bank has posted 27% increase
in net profit to Rs 2655.61 crore in the year ended March 2024 (FY2024). The
net interest income increased 19% to Rs 9829.41 crore, while non-interest
income moved up 38% to Rs 5656.26 crore, pushing up net total income by 25% to
Rs 15485.67 crore in FY2024. The operating expenses increased 36% to Rs 8721.91
crore, while provision and contingencies declined 7% to Rs 3351.23 crore, allowing
profit before tax to increase 45% to Rs 3412.53 crore in FY2024. The
cost-to-income ratio increased to 56.3% in FY2024 compared to 51.9% in FY2023. An
effective tax rate moved up to 22.2% in FY2024 compared to 10.6% in FY2023. The
net profit has increased 27% to Rs 2655.61 crore in FY2024.
|
Indian Overseas Bank: Results
|
|
Particulars
|
2403 (3)
|
2303 (3)
|
Var %
|
2403 (12)
|
2303 (12)
|
Var %
|
|
Interest Earned
|
6628.89
|
5192.44
|
28
|
24049.73
|
19400.33
|
24
|
|
Interest Expended
|
3865.81
|
2916.33
|
33
|
14220.32
|
11145.44
|
28
|
|
Net Interest Income
|
2763.08
|
2276.11
|
21
|
9829.41
|
8254.89
|
19
|
|
Other Income
|
2477.37
|
1429.98
|
73
|
5656.26
|
4108.75
|
38
|
|
Net Total Income
|
5240.45
|
3706.09
|
41
|
15485.67
|
12363.64
|
25
|
|
Operating Expenses
|
3279.34
|
1824.41
|
80
|
8721.91
|
6421.46
|
36
|
|
Operating Profits
|
1961.11
|
1881.68
|
4
|
6763.76
|
5942.18
|
14
|
|
Provisions &
Contingencies
|
767.66
|
995.80
|
-23
|
3351.23
|
3593.93
|
-7
|
|
Profit Before Tax
|
1193.45
|
885.88
|
35
|
3412.53
|
2348.25
|
45
|
|
EO
|
0.00
|
0.00
|
-
|
0.00
|
0.00
|
-
|
|
PBT after EO
|
1193.45
|
885.88
|
35
|
3412.53
|
2348.25
|
45
|
|
Provision for tax
|
385.35
|
235.81
|
63
|
756.92
|
249.46
|
203
|
|
PAT
|
808.10
|
650.07
|
24
|
2655.61
|
2098.79
|
27
|
|
EPS*(Rs)
|
1.71
|
1.38
|
|
1.40
|
1.11
|
|
|
Adj BV (Rs)
|
12.44
|
8.47
|
|
12.44
|
8.47
|
|
|
* Annualized on current equity of
Rs 18902.41 crore. Face Value: Rs 10, Figures in Rs crore
|
|
Source: Capitaline Corporate
Database
|
|