Indian Overseas Bank Q2 Results: PAT Zooms 24.32% To Rs 777 Cr; Asset Quality Improves

For the quarter ended September 30, 2024 (Q2FY25), Indian Overseas Bank (IOB) released solid financial results today. These results showed significant growth across key financial measures and a continuous focus on bettering asset quality.

The net profit of the bank grew by Rs 152 crore, or 24.32% YoY growth to Rs 777 crore in Q2FY25 from Rs 625 crore in Q2FY24. IOB's operating profit grew by Rs 451 crore or 26.89% YoY to Rs 2,128 crore in Q2FY25 from Rs 1,677 crore in Q2FY24. According to IOB, its total income increased from Rs 6,935 crore in Q2FY24 to Rs 8,484 crore in Q2FY25, a 22.34% growth. In Q2FY25, the bank's interest income increased to Rs 6,851 crore from Rs 5,821 crore in Q2FY24, a YoY growth of 17.69%.

According to Indian Overseas Bank, its non-interest income increased from Rs 1,114 crore in Q2FY24 to Rs 1,633 crore in Q2FY25, a year-on-year growth of 46.59%. In Q2FY25, the bank's Return on Assets (ROA) increased to 0.82% from 0.75% in Q2FY24. Additionally, return on equity (ROE) increased from 16.16% in Q2FY24 to 16.90% in Q2FY25.

The Gross Non-Performing Assets (GNPA) ratio of the bank was 2.72% on September 30, 2024, compared to 2.89% on June 30, 2024, and 4.74% on September 30, 2023. The ratio of net non-performing assets (NNPA) was 0.47% on September 30, 2024, compared to 0.51% on June 30, 2024, and 0.68% on September 30, 2023. According to IOB, as of September 30, 2024, its Provision Coverage Ratio (PCR) has increased from 96.76% in Q2FY24 to 97.06% in the quarter under review.

According to IOB, total deposits jumped by 13.75% to Rs 3,10,652 crore from Rs 2,73,093 crore, while total business climbed by 12.20% to Rs 5,40,801 crore from Rs 4,82,006 crore. According to the bank, its gross advances went from Rs 2,08,913 Crore to Rs 2,30,149 Crore, a rise of 10.16%. As of September 30, 2024, the bank's CASA deposits had increased by 10.61% year on year to Rs 1,31,856 crore, with a CASA ratio of 42.44%. During the quarter, the Credit to Deposit (CD) Ratio was 74.09%.