Indian Overseas Bank Dec quarter profit rises 22% to Rs 555 crore

State-owned Indian Overseas Bank (IOB) on Thursday reported a 22 per cent growth in its profit at Rs 555 crore in the quarter ended December 2022 due to an increase in interest income and improved asset quality.

The Chennai-based bank had posted a net profit of Rs 454 crore in the same quarter a year ago.

The bank's total income increased to Rs 6,006 crore in the latest December quarter from Rs 5,317 crore in the year-ago period, IOB said in a regulatory filing.

Interest income of the bank increased to Rs 5,056 crore as against Rs 4,198 crore in the third quarter of the previous fiscal.

On the asset quality front, the bank recorded an improvement with gross NPAs (Non-Performing Assets) declining to 8.19 per cent, as compared to 10.4 per cent at the end of third quarter of previous fiscal.

At the same time, net NPAs too eased to 2.43 per cent, as against 2.63 per cent in the same period a year ago.

As a result, provisions for bad loans declined to Rs 711 crore as against Rs 937 crore during the same quarter a year ago.

The capital adequacy ratio declined marginally to 15.16 per cent in the December quarter as against 15.41 per cent at the end of third quarter of previous financial year.