Chennai-based public sector lender Indian Overseas Bank (IOB) on Monday a reported a 143% jump in its net profit to Rs 350 crore for the fourth quarter of FY21, compared with Rs 144 crore in the corresponding quarter of the last fiscal year.
The bank has reported a total revenue of Rs 6,074 crore for Q4 as against Rs 5,537 crore in the very same quarter prior monetary year, registering 9.7% development. The board of directors has authorized a capital raising strategy to the tune of Rs 2,000 crore. MD & CEO Partha Pratim Sengupta told media persons by means of a virtual meet that there has been very good improvement, each QoQ and YoY, on all monetary parameters.
“ If you look at the FY21 earnings performance, I would say it is a red-letter day for the bank, it has achieved an annual profit after the year 2014. In quarterly results, we have been making steady progress since March 2020, after making profit post being in the red continuously for 18 quarters,” he mentioned.
Increase in other revenue, reduce in expense of deposits and profit from treasury operations have contributed to the profitability of the bank in the fourth quarter, according to him.IOB, which has been below prompt corrective action (PCA), has approached banking regulator RBI a couple weeks ago, with the plea to release the lender type the list of PCA. “We have fulfilled all the requirements which qualify the bank to come out of PCA. Now, it is up to the regulator to take a call on it,” Sengupta mentioned.
The bank had been planing to come out of PCA by focusing on recovery, low-expense deposits and significantly less capital consuming advances. He mentioned the bank’s asset excellent has enhanced substantially. Net NPA stood at 3.58%, which is inside prescribed RBI suggestions.
During the quarter GNPA lowered by Rs 430 crore. GNPA ratios lowered to 11.69% from 14.78%, QoQ. The provision coverage ratio enhanced to 90.34%. The bank has made a recovery of Rs 3,934 crore in Q4 as against Rs 2,377 crore in the corresponding quarter last fiscal year. The bank’s interest revenue stood decrease at Rs 4, 057 crore for the quarter as against Rs 4,442 crore whilst other revenue pretty much doubled to Rs 2,016 crore as against Rs 1,095 crore.
The capital adequacy ratio (CRAR) stood at 15.32% that involves capital inclusion of Rs 4,one hundred crore by the Centre in FY21.