Chennai-based Indian Overseas Bank (IOB) reported a 58% leap in revenue after tax (PAT) to Rs 552 crore within the quarter ended March 2022. The working revenue stood at Rs 1,614 crore in Q4FY22 in opposition to Rs 1,724 crore within the year-ago interval. The web curiosity margin for Q4FY22 was 2.41% in contrast with 2.39% within the December 2021 quarter.
The financial institution posted 12% year-on-year progress in gross advances, which stood at Rs 1,55,801crore as in opposition to Rs 1,39,597 crore a 12 months in the past.
The financial institution is anticipated to proceed on its progress trajectory even because the rate of interest cycle has reversed aided by a well-diversified mortgage portfolio, Partha Pratim Sengupta, MD & CEO of Indian Overseas Bank, stated in a press assembly.
The demand for retail loans is more likely to proceed going forward as there may be sufficient liquidity within the banking system as of now after the lender disclosed its outcomes, Sengupta stated. The liquidity scenario is topic to future actions taken by the Reserve Bank of India, he cautioned. Additionally, wage hikes in some sectors of the economic system may additionally result in larger demand for retail and residential loans, he stated.
The lender expects 25 % progress in its bottomline going forward aided by sturdy mortgage progress and bettering asset high quality. In the post-Covid interval, there may be good revival within the MSME sector, Sengupta stated, which can assist the financial institution keep its 12 % mortgage progress.
Although the lender just isn’t saying no to company loans, it has diversified its portfolio and is sustaining a cautious strategy in direction of company loans.
On asset high quality entrance, Indian Overseas Bank’s gross non-performance asset ratio improved to 9.82% in March 2022 from 10.40% sequentially and 11.69% a 12 months in the past. Its web NPA ratio elevated marginally to 2.65% in March 2022 from 2.63 % sequentially and three.58% a 12 months in the past. Provision Coverage Ratio (PCR) improved from 90.34% as on March 21 to 91.66% as on March 22.
Source: www.financialexpress.com”