State-owned Indian Overseas Bank (IOB) jumped nearly 58 per cent to a net profit of Rs 552 crore for the quarter ended March 2022 on Wednesday, mainly due to lower provisions for bad loans.
The bank had posted a net profit of Rs 350 crore a year ago.
However, according to a regulatory filing, the bank’s total revenue fell to Rs 5,719 crore in the last March quarter from Rs 6,074 crore in the same period a year ago.
The bank’s interest income rose 4 per cent to Rs 4,215 crore in the fourth quarter ended March.
Asset quality has improved as gross non-performing assets (NPAs) fell to 9.82 percent of total growth as of March 31, 2022 from 11.69 percent a year earlier. At the end of December 2021, it was 10.40 percent.
Net NPAs or bad debts have come down from 3.58 per cent to 2.65 per cent on an annual basis. In turn, it was slightly higher than 2.63 percent at the end of December 2021.
Bad debt and non-performing loans for the March 2022 quarter fell to Rs 1,014 crore from Rs 1,380 crore in the year-ago period.
On a year-on-year basis, the bank has increased its net profit by 106 per cent to Rs 1,710 crore in 2021-22. In 2020-21 it was Rs 831 crore.
However, the annual revenue fell to Rs 21,633 crore from Rs 22,525 crore in the previous fiscal year ending March 2021.
The bank’s stock rose 4.12 per cent to close at Rs 17.70 on the BSE.