Q3FY23 results: Net profit of Indian Overseas Bank rises by 22%

New Delhi: State-owned Indian Overseas Bank (IOB) on Thursday reported a 22 percent growth in its profit at Rs 555 crore in the quarter that ended in 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. 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," said the statement.

On the asset quality front, the bank recorded an improvement with gross NPAs (Non-Performing Assets) declining to 8.19 percent, as compared to 10.4 percent at the end of third quarter of previous fiscal. At the same time, net NPAs too eased to 2.43 percent, as against 2.63 percent 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 percent in the December quarter as against 15.41 percent at the end of third quarter of previous financial year.

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