Chennai, India, October 18th, 2024: Indian Overseas Bank (IOB) has announced robust financial results for the quarter ending September 30, 2024 (Q2FY25), reflecting strong growth across key financial metrics and a continued focus on asset quality improvement.

Key Highlights:

• Total Business saw a significant year-on-year (Y-o-Y) growth of 12.20%, reaching ₹5,40,801 Crore, up from ₹4,82,006 Crore.
• Total Deposits rose by 13.75% Y-o-Y to ₹3,10,652 Crore.
• Gross Advances increased by 10.16% to ₹2,30,149 Crore.
• Operating Profit grew substantially by 26.89% Y-o-Y to ₹2,128 Crore, up from ₹1,677 Crore.
• Net Profit also saw a notable increase, rising by 24.32% Y-o-Y to ₹777 Crore.

Strong Asset Quality and Profitability

IOB has demonstrated exceptional progress in reducing non-performing assets:

• Gross NPA Ratio decreased by 202 basis points (bps) to 2.72% from 4.74% a year ago.
• Net NPA Ratio improved by 21 bps to 0.47% from 0.68% Y-o-Y.
• Provision Coverage Ratio (PCR) improved to 97.06%, reflecting an increase of 30 bps Y-o-Y.
• The Return on Assets (ROA) for Q2FY25 reached 0.82%, showing an improvement of 7 bps from the previous year,
• while Return on Equity (ROE) increased to 16.90%, up by 74 bps Y-o-Y.

Income and Margin Growth

IOB’s income generation remained strong:

• Total Income increased by 22.34% Y-o-Y to ₹8,484 Crore.
• Interest Income grew by 17.69% Y-o-Y to ₹6,851 Crore.
• Non-Interest Income saw an impressive Y-o-Y growth of 46.59%, reaching ₹1,633 Crore.
• Additionally, the Net Interest Margin (NIM) stood at 3.08% for the quarter.

Capital Adequacy

The bank’s Capital Adequacy Ratio (CRAR), under Basel III, remained robust at 17.45%, with a Tier I component of 14.75%.

Enhanced CASA and CD Ratios

• CASA deposits improved by 10.61% Y-o-Y, totaling ₹1,31,856 Crore, with a CASA ratio of 42.44% as of September 30, 2024.
• The Credit to Deposit (CD) Ratio stood at 74.09% for the quarter.

PERFORMANCE HIGHLIGHTS (y-o-y)

(Quarter Ended 30.09.2024 Over 30.09.2023)

• Total Business grew by 12.20% to ₹5,40,801 Crore from ₹4,82,006 Crore.
• Total Deposits raised up by 13.75% to ₹3,10,652 Crore from ₹2,73,093 Crore.
• Gross Advances increased by 10.16% to ₹2,30,149 Crore from ₹2,08,913 Crore.
• Gross Investments increased to ₹1,08,517Crore from ₹97,891 Crore.
• Operating Profit grew by 26.89 % to ₹2,128 Crore from ₹1,677 Crore.
• Net Profit up by 24.32% to ₹777 Crore from ₹625 Crore.
• Gross NPA Ratio recorded at 2.72% as on 30.09.2024 as against 4.74% as on 30.09.2023, with a reduction of 202 bps.
• Net NPA Ratio stood at 0.47% as on 30.09.2024 as against 0.68% as on 30.09.2023, with a reduction of 21 bps.
• CASA improved to ₹1,31,856 Crore from ₹1,19,206 Crore, reflecting Y-o-Y growth of 10.61%
• CASA Ratio stood at 42.44% for the quarter ended 30.09.2024.
• Credit to Deposit (CD) Ratio stood at 74.09% for the quarter ended 30.09.2024.
• Net Interest Margin stood at 3.08% for the quarter ended 30.09.2024.
• Provision Coverage Ratio improved to 97.06%, registering an improvement of 30 bps.
• CRAR stood at 17.45% of which Tier I is 14.75%.
• Return on Assets (ROA) improved to 0.82%, registering an improvement of 7bps.
• Return on Equity (ROE) improved to 16.90% from 16.16% with an improvement of 74bps Y-o-Y.

PROFITABILITY (y-o-y)

(Quarter Ended 30.09.2024 Over 30.09.2023)

• Net Profit has increased to ₹777 Crore for the Q2FY25 from ₹625 Crore for the Q2FY24, registering a growth of ₹152 Crore at 24.32% Y-o-Y basis.
• Operating Profit has increased to ₹2,128 Crore for Q2FY25 from ₹1,677 Crore for Q2FY24, registering a growth of ₹451 Crore at 26.89% Y-o-Y basis.
• Total Income improved by 22.34% to ₹8,484 Crore for Q2FY25 from ₹6,935 Crore for Q2FY24.
• Interest Income grew by 17.69% on Y-o-Y basis to ₹6,851 Crore in Q2FY25 as against ₹5,821 Crore for Q2FY24.
• Non-Interest Income grew by 46.59% on Y-o-Y basis to ₹1,633 Crore in Q2FY25 as against ₹1,114 Crore for Q2FY24.
• Return on Assets (ROA) improved to 0.82% for Q2FY25 as against 0.75% for Q2FY24.
• Return on Equity (ROE) also improved to 16.90% for Q2FY25 as against 16.16% for Q2FY24.

ASSET QUALITY

(Quarter Ended 30.09.2024 Over 30.06.2024 & 30.09.2023)

• Gross Non-Performing Assets (GNPA) ratio recorded at 2.72% as of 30.09.2024 as against 2.89% as of 30.06.2024 and 4.74% as of 30.09.2023.
• Net Non-Performing Assets (NNPA) ratio stood at 0.47% as of 30.09.2024 as against 0.51% as of 30.06.2024, 0.68% as of 30.09.2023.
• Provision Coverage Ratio (PCR) improved to 97.06% as of 30.09.2024 from 96.76% as of 30.09.2023. (As on 30.06.2024, PCR was 96.96%).

RECOVERY

•  Total Recovery for the quarter ended 30.09.2024 stood at ₹1,482 Crore.
•  Recovery from the written off accounts for the quarter ended 30.09.2024 is ₹1,118 Crore.

CAPITAL ADEQUACY

• BASEL III Capital Adequacy Ratio (CRAR) stood at 17.45 % as of 30.09.2024, out of which CET1 is 14.75% and Tier-II is 2.70%.