New Delhi : The Capital Adequacy Ratio rose to 17.45 per cent from 17 per cent by the end of the previous fiscal quarter. The Indian Overseas Bank (IOB), which is owned by the government, reported a 24 pc increase in net profit to Rs 777 crore during the second quarter that ended in September 2024. The lender had generated a net profit of Rs 625 crore during the corresponding quarter in the previous year. IOB reported in a regulatory filing that its total revenue rose to Rs 8,484 crore in the current quarter from Rs 6,935 crore in the previous year's same period.
During the quarter, the bank's interest income increased to Rs 6,851 crore from Rs 5,821 crore in the previous year. Regarding the quality of assets, the bank successfully decreased gross non-performing assets (NPAs) to 2.72 percent of gross loans by September 2024, down from 4.74 percent in the previous year. Likewise, the percentage of net NPAs or bad loans decreased to 0.47 from 0.68 by the end of the second quarter of the previous fiscal year.
Consequently, the amount set aside for non-performing loans decreased to Rs 71 crore from Rs 1,121 crore allocated in the corresponding quarter of FY24. The bank's Provision Coverage Ratio was at 97.06 percent as of September 30, 2024. The Capital Adequacy Ratio rose to 17.45 per cent from 17 per cent by the end of the previous fiscal quarter.
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