Indian Overseas Bank Q1 net profit rises 20% to Rs 392 cr on less bad loans

State-owned Indian Overseas Bank (IOB) on Saturday posted a 20 per cent rise in net profit to Rs 392 crore for the first quarter of the current financial year, helped by a decline in bad loans.

The Chennai-based lender had reported a net profit of Rs 327 crore in the April-June quarter of 2021-22.

The bank's total income declined to Rs 5,028 crore in the first quarter of 2022-23, as against Rs 5,607 crore in the same period a year ago, IOB said in a regulatory filing.

Operating profit slipped to Rs 1,026 crore from Rs 1,202 crore earlier.

However, interest income of the bank moved up to Rs 4,435 crore as against Rs 4,063 crore.

Net interest margin (NIM) rose to 2.53 per cent as against 2.34 per cent at the end of first quarter of FY22.

The bank's gross non-performing assets (NPA) ratio declined to 9.03 per cent from 11.48 per cent at June-end last year. Similarly, net NPAs declined to 2.43 per cent from 3.15 per cent.

As a result, the provision for bad loans declined to Rs 132.73 crore from Rs 1,010.15 in the same period a year ago.

Provision Coverage Ratio (PCR) improved to 91.86 per cent as of June 30, 2022.